In accordance with federal guidelines, states may establish programs to provide health insurance for uninsured children (up to age 19). The purpose is to provide health insurance coverage for children in families making too much money to qualify for Medicaid, but not enough money to purchase health insurance on the open market.

The Wyoming Department of Health estimates that there are over 21,000 uninsured children in the state. Under the federal program, a commitment of $2.5 million from Wyoming for a child health insurance program would bring in over $7.5 million in federal matching funds.

SF 50A was the first step toward setting up a child health insurance program in Wyoming. It offered a graduated state subsidy for child health insurance to families with maximum gross income at or below 175% of the federal poverty level, and gave families the option of choosing among: private employer-based health insurance, if available; individual coverage under a group health plan; a state-administered health insurance plan, if available; or a medical savings account.

Co-payments under the child health insurance programs would be not more than under Medicaid, with no co-payments for well-baby care, well-child care, and immunizations.

Proponents argued that establishing a child health insurance program is a smart investment because when small medical problems turn into big ones, the state often ends up footing the bill. They also pointed to other effects of poor health care for children, such as impaired performance at school and lost productivity for parents.

Opponents feared creating "another Medicaid program" and argued that the bill might hurt private insurance providers.

The Senate killed SF 50A in Committee of the Whole (the first opportunity for full floor debate), 10-20.