SCHIP Round 2

The Senate passed the latest reauthorization package for the State Children’s Health Insurance Program (SCHIP) despite continued veto threats from the White House. The Senate voted 64-30 in favor of passing H.R. 3963, setting up yet another veto fight in what appears to be the season of vetoes. However, unlike the first time Congress sent SCHP to the President, Democrats are not planning to rush an override vote, opting to take a more subtle approach this time around.

The bill still increases SCHIP funding by $35 billion over five years, offset by a $.61 increase on cigarette taxes. However, the bill contains language that will phase childless adults out of the program in one year, as well as language to ensure children currently covered by private insurance companies stay with their current plans. Republicans, however, are still concerned with the cost, and the bill’s apparent attempts to shift children to “socialized” healthcare. President Bush is still promising to veto the package due to excessive spending. His Administration proposed only a $5 billion expansion earlier this year.

The new bill also includes language that would keep the Department of Health and Human Services (HHS) from implementing restrictions on Medicaid payments until January of 2010. This provision is in direct response to efforts by the Center for Medicare and Medicaid Services (CMS) to place restrictions on Medicaid payments to schools for administrative and transportation costs related to services provided to students under the Individuals with Disabilities Education Act (IDEA). Congress attached a 6 month moratorium on these restrictions in the conference report of the last SCHIP bill, but that proposal died when the House failed to override the President’s veto.

Thursday, November 1, the House Oversight and Government Reform Committee held a hearing on the proposed changes to Medicaid payments. Advocates from various education and health organizations presented their concerns regarding CMS’ efforts to members of Congress. Dennis Smith, Director of the Center for Medicaid and State Operations at CMS attempted to defend his agency’s regulatory efforts, but was met with much skepticism. Members of the Committee, including Chairman Henry Waxman (D-CA), viewed CMS’ actions as disrespectful to Congress’ role of oversight and their authority over governmental programs.

Democrats in the House are still 15 votes shy of a veto-proof majority for the SCHIP bill, but have laid plans to bring as much political pressure to their opposition as they can before bringing the bill to the floor for an override vote. Last time, Democrats rushed the House vote, against Republican protests, and suffered for it. This time the Democratic leadership plans to hold off on an override vote long enough to actively campaign for the additional votes necessary. As such, it is not clear when the final override vote will happen, so Congress may end up having more December votes than they anticipated.

Resources:
Drew Armstrong, “SCHIP Clears Again; Talks Continue With Would-Be Supporters in House,” CQ Today, November 1, 2007.
Stephen Langel, “Democrats Stepping Back After Latest SCHIP Defeat,” Congress Now, November 1, 2007.
Mark W. Sherman, “Lawmakers, CMS Official Spar Over School Medicaid Dollars,” Education Daily, November 2, 2007.
Author: SAS