Congress Passes SCHIP Expansion

Last Thursday, the Senate passed an expansion of the State Children’s Health Insurance program (SCHIP), by a vote of 68-31. S. 976 expands SCHIP by $35 billion over five years to cover an additional 3 million low-income children, paid for by an increase in federal taxes on cigarettes. The House passed a $47 billion five-year SCHIP expansion on Wednesday, by a vote of 225-204. Both proposals are facing a veto threat from the White House but, unlike the House, the Senate seems to have the necessary votes to override the President. Yet, before the President plays a role, the two bills must go to conference where Congressional negotiators need to iron out the large differences between the two measures.

The Senate bill contains a $.61 increase on cigarette taxes, bringing them to an even $1. The House proposes a smaller increase of only $.45, but also includes spending cuts for Medicare Advantage, a program in which private managed-care plans provide benefits to seniors in place of the government. The cuts in the House bill would raise $157 billion over 10 years that, along with the tobacco tax increase, will pay for the increased expansion. Many Senate Republicans who voted in favor of S. 976 say that they will not vote for a bill that includes cuts to Medicare Advantage. At the same time, Southern Democrats in the House are reluctant to approve a larger tax increase. Both sides need to find a compromise that can pass through both chambers.

Once the bill clears conference, the President will remain the final hurdle before the expansion can go into effect. The White House called for a $5 billion expansion and has voiced opposition to the large increases proposed on Capitol Hill. While the Senate vote indicates it will have the 60 votes necessary to override a veto, the House fell far short of the 290 votes required to fight off a veto. If the conference report is able to pull in the additional votes in the House, conferees run the risk of alienating too many Republicans in the Senate, thereby taking away their ability to fend off a Presidential veto. Lawmakers will likely do some pre-conference work during the August recess, so that the conference report can go to both chambers for final approval sometime in September.

Resources:
Alex Wayne, “Tough Negotiations Ahead on Children’s Health Care Expansion, Medicare,” CQ Today, August 2, 2007.
George Cahlink, “Senate Approves SCHIP With Veto-Proof Majority,” Congress Now, August 2, 2007.
Jennifer Bendery, “House Passes SCHIP, but Without Veto-Proof Margin,” Congress Now, August 1, 2007.
Author: SAS