More than two years in the making, Congress has passed a bill reauthorizing the State Children's Health Insurance Program. President Obama signed the bill into law Wednesday.
After some tough partisan wrangling last year, Congress resorted to passing a temporary SCHIP funding extension that would have expired on March 31. Instead, the new law will provide coverage for the current 7 million children already enrolled and will extend it to an additional 4.1 million.
The law is funded for 4.5 years.
"The current economic crisis (made) reauthorization of this program essential," said former House Energy and Commerce Committee chairman John Dingell (D-Mich.).
Passage of the SCHIP law is likely welcome news to the President and those who would pursue his aggressive healthcare reform plans. In a disappointing blow to many, former Sen. Tom Daschle (D-S.D.) stepped down as Obama's pick for Department of Health and Human Services Secretary Tuesday, after facing a Senate vetting process that exposed more than $100,000 in tax lapses.
Daschle was considered by congressional leaders of both parties to be a strong candidate for leading healthcare reform.
President Obama has targeted healthcare reform as a significant part of his economic recovery plans. Lawmakers say passage of the SCHIP law is a first step toward improving the economy and a down payment on healthcare reform.
In addition to funding and expanding the SCHIP program, the law will also give states the option to end the five-year waiting period for low-income, uninsured children who are legal residents.
"This is far from healthcare reform, but it is a necessary start," said Henry Waxman (D-Calif.), chairman of the House Energy and Commerce Committee.
According to the Associated Press, the bill cleared its final hurdle Wednesday when the House passed a Senate amendment to the bill 290-135, with 40 Republicans backing it. The bill calls for spending an additional $32.8 billion on SCHIP with funding generated by an increase in federal tobacco tax.
"Now we're protecting our nation's most important asset," said Herb Conaway, Jr., MD, a practicing physician, New Jersey assemblyman and past chair of the National Conference of State Legislatures' Health Committee. "Whether a child breaks a bone or needs a transplant, coverage is available to those families that can't otherwise afford the skyrocketing costs of health care."
The battle over SCHIP is reflective of current battles taking place over the economic recovery package, passed by the House last week and under consideration by the Senate this week. Some Republicans are wary of overspending, while Democrats see more coverage as essential.