Three days after the Senate Finance Committee announced a proposal for renewing the State Children's Health Insurance Program, lawmakers unveiled a $35 billion bipartisan plan to secure the coverage of about 3.3 million more children. The proposal faces an uncertain future, as the Bush administration on Saturday threatened a veto.
Sens. Max Baucus (D-Mont.), Charles Grassley (R-Iowa), Jay Rockefeller, (D-W.Va.), and Orrin Hatch (R-Utah) said they will consider a Chairman's Mark of the new agreement next week. Under the plan, $35 billion would be added over five years to the $25 billion baseline federal funding of SCHIP.
Hatch said the proposal isn't perfect, but it is a true compromise on SCHIP expansion and renewal. The program, which stands to expire September 30, has been the subject of debate as Congressional Democrats called for as much as $50 billion in new funding. House Republicans previously indicated that they wouldn't back a bill with more than $35 billion allocated.
Funding for the expansion would likely come from a proposed tobacco tax increase, which has received support on both sides of the aisle. Democrats have also suggested redirecting the subsidies paid to private insurers of managed Medicare Advantage plans.
Provisions in the Chairman's Mark would offer compromises on many long-debated SCHIP issues, and may include:
- Improvement of the state allotment formula to reflect actual projected spending
- Contingency fund to address unforeseen emergencies
- Funding for outreach and enrollment efforts, including those among American Indian populations
- Regular Medicaid match rates for beneficiaries above 300 percent of the federal poverty level
- States can use information from food stamp programs and other initiatives for low-income families to find and enroll eligible children
- Childless adults currently enrolled in the program will be transitioned into Medicaid, and new waivers for additional adult coverage will not be permitted
- Improved pediatric quality measures for SCHIP and Medicaid
Members of the House and Senate will still have to negotiate the terms of the renewal. The Chairman's Mark is expected to spur Senate consideration by the end of the month.
But beyond Congress, the bill would face a steadfast opponent. President Bush has fought against increased support of SCHIP, claiming that additional federal funding for the public program is a step towards a single-payer healthcare system. The president's advisors indicated that he would veto substantial increases in SCHIP funds.