The House of Representatives passed the Children's Health and Medicare Protection (CHAMP) Act in a 225 to 204 vote on Aug. 1.
The legislation, which would reauthorize and expand the State Children's Health Insurance Program by $50 billion over five years, was approved after hours of statements and numerous delaying tactics from its opponents. The vote fell largely along party lines.
A scheduled 10 percent cut to physicians' Medicare payments in 2008 would also be staved off by the CHAMP Act. The bill, which would cost a total of $90 billion, would be funded by a 45-cent increase on the federal cigarette tax and cuts to subsidies paid to private insurers offering Medicare Advantage plans.
House Republicans were critical of the Democrats' bill during the lengthy voting process. Rep. Dennis Hastert (R-Ill.) said in a floor statement, "It's unfortunate that today we are considering legislation which was rushed through the House without proper consideration in the Energy and Commerce Committee. There were no legislative hearings held by the Subcommittee or full committee on a bill that could cost taxpayers over $300 billion."
Rep. Patrick Kennedy (D-R.I.) supported the bill, saying, "After twelve years of out-of-control cost increases and record breaking numbers of Americans losing their health insurance coverage, I am proud to support the CHAMP Act which puts this nation back in the right direction of working to ensure that every American has access to quality and affordable health care."
House Republican Whip Rep. Roy Blunt (R-Mo.) criticized the CHAMP Act's reliance government funding for health insurance. "The bill we voted on today wasn't written with needs of children in mind," said Blunt. "Under this legislation, 2.1 million children currently covered by existing health plans would be dumped into a single-payer, government-run health care scheme."
In a floor statement, Speaker of the House Nancy Pelosi (D-Calif.) said the CHAMP Act would ensure health insurance for 11 million American children. "By passing the CHAMP Act, the New Direction Congress is keeping our promise to seniors on Medicare and meeting our obligation to our future - our children."
Leading advocacy groups for medical providers and insurance companies remarked on passage of the bill as well.
"The House bill shreds the safety net for millions of seniors who depend on Medicare Advantage," said Karen Ignagni, president and CEO of America's Health Insurance Plans.
The American Medical Association applauded the passage of the CHAMP Act. AMA Board Chair Edward Langston, MD, said, "By increasing the tobacco tax and eliminating overpayments to insurance companies offering private Medicare plans, Congress has found two appropriate ways to pay for these important national health care priorities."
President Bush has threatened to veto any major expansion of SCHIP, claiming that the program could become a steppingstone to a single payer healthcare system.