SCHIP Debate on Hold

Negotiations on the State Children's Health Insurance Program (SCHIP) are on hold regarding Republican objections to a provision in the House version that cuts Medicare payments to private doctors. Both chambers have passed their own versions of the bill, but still need to go to conference. Meanwhile, Congressional Democrats and various advocacy groups rallied to encourage conferees to move forward on the bill. As has been the case on nearly every major bill this session, after conferees agree on a bill, they will still have to contend with criticisms and veto threats from the White House.

Republicans are upset with a provision the House's SCHIP bill, which expands the program by $50 billion, through both a cigarette tax increase and proposed cuts in Medicare payments to private doctors. Senate Republicans have stated their strong opposition to the cuts, freezing negotiations until a compromise is reached. Even after the conferees move past that particular issue, there is still a matter of reconciling the difference between the House expansion, and the Senate's $35 billion expansion. Both proposals include tax increases on cigarettes, but the amount of the increase is a matter of contention. The conferees will have to strike a delicate balance that will keep a majority of support in both chambers. While the program itself enjoys bipartisan support, liberal Democrats in the House are adamant about the Medicare cuts, while conservative Republicans are equally opposed. Both groups are important to Congressional leaders to ensure final passage.

Meanwhile, House Speaker Nancy Pelosi (D-CA), several Democratic lawmakers and labor leaders rallied in support of the legislation, urging President Bush not to veto the final bill that emerges from Congress. The President opposes the bill because of the excessive spending involved, the large tax increase, as well as the Medicare cuts. The President proposed a mild $5 billion expansion, and has threatened the large increase proposed in both chambers. If negotiators are unable to appease Republicans in both the House and the Senate, neither chamber will have the necessary votes to override a veto. Between this debate, and the battle over other appropriations measures, there is likely to be a lot of horse trading occurring on the Hill.

Resources:
Stephen Langel, "SCHIP Conference on Hold Over GOP Objections to Medicare Provisions," Congress Now, September 5, 2007.
Kelly Shaw, "Top House Democrats, Labor Allies Push for Passing Final SCHIP Bill," Congress Now, September 6, 2007.
Author: SAS