Congress Reaches Deal on SCHIP

Lawmakers on Capitol Hill finally reached a deal on expanding the State Children’s Health Insurance Program (SCHIP), which expires at the end of September. The deal mirrors the Senate version of the expansion, though it does contain certain House provisions. Congress is expected to move quickly on the compromise, but veto threats from the White House will still act as a barrier to final passage.

According to Congressional aides, the agreement includes the Senate’s $.61 tax increase on tobacco products and the Senate’s provisions for adult coverage. The bill will also include the Senate’s $35 billion funding level for the program over five years, but will use the House’s formula for coverage. The final language will also include the House’s additional provisions for dental, mental health and vision coverage. Adding those coverage provisions allow the House to claim some credit for shaping the deal. A controversial House proposal that would cut Medicare payments to private doctors was left out of the final compromise. If that provision were included in a final bill, many conservative Republicans in the Senate would have stood in opposition to final passage.

Although the bill is expected to move through Congress quickly, the President commented yesterday that he intends to veto the expansion. The President proposed a mild expansion for SCHIP, totaling $5 billion over five years. President Bush opposes the $35 billion expansion, which he claims is simply a way for Democrats to earn points in Washington, because the proposal would, "raise taxes on working people.” Although Republican Senators Susan Collins (ME) and Charles Grassley (IA) have publically chastised the White House for threatening to veto the deal, it is unclear if either the House or the Senate has the necessary votes to override a veto. Meanwhile, Rep. Joe Barton (R-TX), the ranking member of the House Energy and Commerce Committee is drafting a one year extension of the program, including inflation-based funding increases, to act as a replacement if the current proposal is vetoed.

Resources:
Stephen Langel, “Lawmakers Reach Deal to Expand SCHIP Coverage,” Congress Now, September 19, 2007.
David Jackson, “Bush Vows to Veto Expansion of Children's Insurance Plan,” USA Today, September 21, 2001.
Author: SAS