SCHIP Heading Towards Veto

The House and Senate have both passed the State Children’s Health Insurance Program, H.R. 976 (SCHIP) conference report and the attention now turns to the promised Presidential veto and the Democratic leadership’s ability to override it. An override requires two-thirds vote in each chamber.

Last Thursday evening, the Senate passed the SCHIP conference report by a vote of 67-29, enough to override the threatened Presidential veto in the Senate. The House approval of the conference report, however, lacked the needed 2/3 majority with a vote of 265-159.

The conference report would expand the children’s health insurance program by $35 billion over the next five years, to $60 billion. The expansion would be financed by tobacco tax increases, including a 61-cent increase in the cigarette tax to $1 per pack.

It also contains a critical moratorium on the ability of the Secretary of Health and Human Services from taking any action that would limit Medicaid payments to school districts. According to Section 616 of the conference report:

The Secretary of Health and Human Services shall not, prior to May 28, 2008, take any action […] to restrict coverage or payment under title XIX of the Social Security Act for rehabilitation services, or school-based administration, transportation, or medical services if such restrictions are more restrictive in any aspect than those applied to such coverage or payment as of July 1, 2007.

While the moratorium would only extend until May 28, 2008, it represents a considerable victory for school districts and states that are resisting the recent regulatory actions by the Center for Medicare and Medicaid Services (CMS) to cut Medicaid funding by reducing school-based and rehabilitative services for children with disabilities. The threatened veto, however, places that victory in jeopardy. Whether the Democratic majority can secure enough votes in the House and Senate is not clear but unlikely.

The President argues that the expansion is a step toward federalization of health care. “Their proposal is beyond the scope of the program, and that's why I'm going to veto the bill.” If the President does, in fact, veto the conference bill then negotiations will begin anew, making one thing certain: The political theatre over the SCHIP bill will continue beyond its expiration on September 30. To keep funding flowing for the program, the Senate cleared a continuing resolution on Thursday that extends until November 16.

Resources:
Alex Wayne, “As SCHIP heads Toward Veto, Backers Say Bush Abandoning Promise to Kids,” Congressional Quarterly, Sept. 27, 2007.
Mark Silva, “Line in sand: Health-care veto,” Chicago Tribune, Sept. 21, 2007, http://www.chicagotribune.com/services/newspaper/printedition/friday/chi-bush_frisep21,0,5782557.story/
Stephen Langel, “Lawmakers: Even After Veto, Chances for SCHIP Deal Appear Dim,” Congress Now, Sept. 27, 2007.
Author: DAD