Guest post by the GoHealth Insurance Research Team

 

The State Children’s Health Insurance Program — better known as SCHIP — was created by Congress in 1997. It was designed to provide health coverage for uninsured children through a combination of state and Federal funds.

 

The $40 billion originally budgeted for SCHIP runs out this year. Congress now must re-authorize the program and determine how much more money will be spent. That issue has become the subject of a fierce debate — how much should be re-invested into SCHIP?

 

In President Bush’s budget proposal to Congress back in February of 2007, he allotted $5 billion for SCHIP over the next 5 years. That number was rejected by many lawmakers, who want to spend $50 to $75 billion and further expand the program. President Bush has since added $10 billion to his proposal, but it’s still well shy of what the opposition is demanding.

 

The Bush administration maintains the SCHIP program should be restricted to provide coverage for uninsured children in families with incomes of up to 200% of the federal poverty level. But many states have already been given the Federal go-ahead to extend SCHIP coverage to uninsured parents — a factor that’s contributed to the program’s budget shortfall. Now that the money is running out, the White House wants to cut off coverage for adults completely.

 

They want to restrict SCHIP eligibility because they see the expansion as a move toward universal healthcare. President Bush was quoted in the Los Angeles Times, saying Democrats are pushing SCHIP expansion because they want “to take incremental steps down the path to government-run healthcare for every American.”

 

Republicans tend to support a market reform — rather than universal healthcare — to make private health coverage more accessible. They argue that increased competition would drive prices down and make health plans for children more affordable for families with incomes above 200% of the poverty level.

 

It’s true that many Democrats are exploring the idea of universal healthcare for all Americans. But even politicians who don’t support universal healthcare have raised an important argument in favor of expanding SCHIP coverage to adults: when parents get coverage, it increases the chance they’ll enroll their children, too. When Mark McClellan was the administrator of the Centers for Medicare and Medicaid Services, he authorized grants to 13 states to extend the SCHIP coverage to parents.

 

“In support of that approach, there is no question that covering kids with their parents is more efficient overall. It’s a better way to provide coverage than to have separate plans for kids and parents,” explained McClellan.

 

Another concern of restricting SCHIP eligibility is that many children could lose coverage — especially if they’re above the 200% poverty level.

 

The question isn’t if SCHIP will be re-authorized or not. It’s whether eligibility will be restricted or expanded.

 

Who do you think should SCHIP cover?

 

 

Sources

Alonso-Zaldivar, Ricardo. Bush Criticizes Children’s Health Plan.
Los Angeles Times. June 28, 2007. http://www.latimes.com/news/nationworld/politics/la-na-kids28jun28,1,3165586.story?ctrack=1&cset=true

 

Freking, Kevin. States, Feds Split on Kids’ Health Insurance.
USA Today. June 18, 2007.

http://www.usatoday.com/news/health/2007-06-18-kidsinsurance_n.htm

 

Pear, Robert. A Battle Over Expansion of Children’s Insurance. The New York Times. July 9, 2007. http://www.nytimes.com/2007/07/09/washington/09child.html

 

SCHIP Waivers Allowing States To Expand Coverage To Adults Break From Bush Administration’s Position, Lawmakers Say. Medical News Today. June 25, 2007. http://www.medicalnewstoday.com/medicalnews.php?newsid=74982