September 25, 2007
Contact: Robin Winchell (202) 225-4031 

WASHINGTON, D.C. - U.S. Rep. Charlie Melancon (D-LA), today joined a majority in the House of Representatives in support of bipartisan legislation, which reflects a House-Senate compromise, to provide health care to more than 10 million low-income children. The Children's Health Insurance Program (CHIP) Reauthorization Act was approved by a vote of 265-159.

"No child in Louisiana or anywhere throughout our nation should ever go without medical care," said Rep. Melancon. "This bill will fully fund CHIP and provide healthcare coverage for thousands of Louisiana children in working families who currently lack health insurance because they cannot afford costly private insurance and their employers do not provide it for them.  CHIP helps ensure that all of our children can grow up healthy, regardless of their parent's income, and I am proud to support its reauthorization."                               

The Children's Health Insurance Program (CHIP) was created in 1997 to provide health care coverage for children in families that earn too much to qualify for Medicaid, but not enough to afford private insurance. 

The bipartisan bill that passed the House tonight reauthorizes the Children's Health Insurance Program (CHIP) for five years and preserves the coverage for all 6.6 million children currently covered by CHIP, including preserving the coverage of 109,150 children in Louisiana.

The bill also gives states the resources and incentives necessary to reach millions of uninsured children who are currently eligible for CHIP but are not yet enrolled in the program. The nonpartisan Congressional Budget Office estimates the bill will extend health care coverage to 3.8 million additional low-income children, who are currently uninsured, including extending coverage to 82,800 uninsured children in Louisiana. 

"Even today, millions of children in America's working families can't see doctors when they should and can't get medicines when they need them, because their parents just can't afford costly private insurance," said Rep. Melancon. "This bill will give millions of children from moderate-income working families the chance for good health and I urge the President not to veto it."

The cost of providing health coverage for 10 million children will be partially offset by increasing the federal tax on tobacco products.  Regarding the tobacco tax increase, Rep. Melancon said, "As a fiscal conservative, I have opposed tax increases in the past, and I believe it is important that Congress first attempt to find ways to fund programs without increasing taxes. And because I generally oppose taxes that target particular groups of people, supporting a bill containing a tobacco tax increase was a difficult decision for me."

"Nonetheless, I also believe it is important that our nation's children have health insurance. Keeping taxes low and providing healthcare for children both are important goals, and I had to weigh both of these priorities when deciding whether to vote in support of this bill.  Ultimately, I decided it was more important to ensure that the children of Louisiana had access to affordable, high-quality health care, I am proud to back a plan that will give more than 10 million American children the care they deserve."

The bipartisan House-Senate bill has a broad range of support and has been endorsed by more than 270 organizations, representing millions of Americans - ranging from groups such as the American Medical Association and America's Health Insurance Plans to Families USA, the consumer advocacy group.

A fact sheet on the bill is below.

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BIPARTISAN CHILDREN'S HEALTH INSURANCE

PROGRAM (CHIP) REAUTHORIZATION

Today, the House considered a motion to concur in House amendments to Senate amendments to H.R. 976, Children's Health Insurance Program (CHIP) Reauthorization Act of 2007.  This represents the bipartisan House-Senate agreement on this legislation.  This bill reauthorizes the Children's Health Insurance Program (CHIP), which expires on September 30, 2007, for five years and provides health care coverage for more than 10 million children.  Below are highlights of some of the bill's provisions.

Invests $35 billion in new funding for CHIP.   The bill reauthorizes the Children's Health Insurance Program, investing an additional $35 billion over five years to strengthen CHIP's financing; increase health care coverage for low-income, uninsured children; and improve the quality of health care children receive.  As Republican Senator Grassley has pointed out, "As far as the size of the package, it's important to understand that about half of the new money is needed just to keep the program running, and the rest goes to cover more low-income kids." 

Ensures health care coverage for more than 10 million American children.  First, the bill ensures that the 6.6 million children who currently participate in CHIP continue to receive health care coverage.  It also extends coverage to 3.8 million children who are currently uninsured, according to the nonpartisan Congressional Budget Office.  

Does not "expand" CHIP; simply provides for enrolling children who are currently eligible but not yet enrolled.  This bill does nothing to "expand" the CHIP program; it maintains current law regarding children's eligibility for CHIP.  Two-thirds of uninsured children are currently eligible for coverage through CHIP or Medicaid - but better outreach and adequate funding are needed to identify and enroll them.  This bill gives states the resources and incentives necessary to reach millions of uninsured children who are eligible for, but not enrolled in, the program.

Targets lowest-income uninsured children for outreach and enrollment.  The bill is designed to target specifically the lowest-income uninsured children for outreach and enrollment in CHIP coverage.  The bill does NOT call for CHIP coverage for children in families at higher income levels.  Instead, it reduces federal matching funds for future coverage of children at higher income levels, and provides incentives to cover the lowest-income children instead. 

Prioritizes children's coverage.  The bill contains provisions to phase out the coverage of parents and childless adults in CHIP.  However, it provides coverage of pregnant women as a new state option as well as preserving the options to cover pregnant women through a state waiver or through regulation.

Improves CHIP benefits -- ensuring dental coverage and mental health parity.  Under the bill, quality dental coverage will now be provided to all children enrolled in CHIP.  The bill also ensures that states will offer mental health services on par with medical and surgical benefits covered under CHIP.   

Provides states incentives to enroll uninsured low-income children.  The bill provides incentives for states to lower the rate of uninsured children by enrolling eligible children in CHIP and Medicaid, including providing bonus payments.  States will receive state-based allotments that are responsive to state demographic and national spending trends.  States that face a funding shortfall and meet enrollment goals will receive an adjustment payment to ensure that no child who is eligible for Medicaid or CHIP is denied coverage or placed on a waiting list. 

Replaces CMS August 17^th letter to the states.  On August 17, the Center for Medicare and Medicaid Services (CMS) sent a letter to the states drastically changing federal policy and placing unrealistic conditions on the ability of states to cover children above 250 percent of poverty.  This bill replaces that letter.  First, the bill states that it agrees with the President on the importance of ensuring that low-income children have health coverage and taking steps to address substitution of private coverage.  Secondly, the bill replaces the letter with a more appropriate approach.  In place of the letter, the bill gives states time and assistance in developing and implementing best practices to address substitution of coverage.  The bill also puts the lowest-income children first in line by phasing in a new requirement for coverage of low-income children as a condition of receiving CHIP funding for coverage of children above 300 percent of poverty.  

Improves outreach tools to streamline enrollment of eligible children.  The bill provides $100 million in grants for new outreach activities to states, local governments, schools, community-based organizations, safety-net providers and others.

Improves the quality of health care for low-income children.  The bill establishes a new quality child health initiative to develop and implement quality measures and improve state reporting of quality data.

Is fully paid for - by raising the tobacco tax by 61 cents a pack.  The higher the cost of cigarettes, the less likely kids will take up smoking.  According to the Campaign for Tobacco-Free Kids, a 61-cent increase in the tobacco tax means that 1,873,000 fewer children will take up smoking.  Furthermore, the vast majority of Members of the House and Senate - both Democratic and Republican - are on record in favor of raising tobacco taxes.  In August, all but 4 House Republicans voted for the GOP motion to recommit that included an increase of 45 cents a pack in the tobacco tax.