Senate Panel Passes SCHIP Proposal

On Thursday, July 19, the Senate Finance Committee passed the Children's Health Insurance Reauthorization Act, finally bearing results from the ongoing debate on the State Children’s Health Insurance Program (SCHIP). While leaders in both chambers failed to add SCHIP reauthorization as an amendment to the fiscal year 2007 (FY07) continuing resolution and the FY07 supplemental appropriations bill, Finance Committee chairman Max Baucus (D-MT) and ranking member Chuck Grassley (R-IA) have finally brokered a deal along more moderate terms. However, the story is far from over, as the bill must survive a floor vote before facing down a threatened Presidential veto.

SCHIP, which provides health insurance for about 6 million children from low-income families that are not poor enough to qualify for the larger Medicaid program, is considered by many to be the most important health legislation that Congress will take up this year. The bill expands the program by $35 billion over five years, far short of the $50 billion authorized under the FY08 joint budget resolution. The committee bill will use a tax increase on cigarettes, from $.39 to an even $1, to offset the increase. Chairman Baucus claims that the increase will expand the program to cover an additional 10 million uninsured children. Despite opposition from the extreme right and left of each party, the Committee passed the bipartisan deal.

The proposal faces contentious debate on the Senate floor. Some liberals in the majority feel the expansion is too mild. Sen. John Kerry (D-MA) has pledged to bring an amendment to the floor that will increase the expansion to the $50 billion agreed to in the budget resolution. House leaders have also announced their intentions to pass a $50 billion increase. On the other side of the spectrum, fiscal conservatives feel the expansion is too extreme. President Bush, who proposed only a $5 billion increase, has already promised to veto the bill, unless Congress draws back the funding increase. Congress and the White House find themselves at odds over funding levels on nearly every spending bill for FY08, putting the SCHIP proposal on very thin ice.

Resources:
Deb Riechmann, “Bush Threatens to Veto Insurance Measure,” Associated Press, July 18, 2007.
Stephen Langel, “SCHIP Clears Major Hurdle, but Compromise With White House Considered Unlikely,” Congress Now, July 19, 2007.
Timothy R. Homan, “Senate Panel Approves Renewal of Health Insurance Program for Children,” CQ Today, July 19, 2007.
Author: SAS