In 1997, the Republican-led Congress passed landmark legislation to provide health insurance for children who do not qualify for Medicaid, but whose parents cannot afford insurance premiums. Through a partnership between the federal government and the states, the State Children’s Health Insurance Program (SCHIP) has been able to provide an important service to Americans who can least afford health care.

In California, the current SCHIP program covers children whose families are making 250 percent of the federal poverty level, or an income of $53,000 for a family of four.

On January 14, 2009 Congress approved H.R. 2, “the Children’s Health Insurance Program Reauthorization Act of 2009.” I opposed this bill as it drastically alters the purpose and scope of the SCHIP program.

At a time when we can barely fund and sustain current SCHIP enrollment levels, this legislation expands eligibility while eliminating the mandate to cover 95% of children under 200 percent of the poverty level, threatening the original intent of the SCHIP program. 

This bill removes the focus of insuring poor children to instead expand government run health care to new immigrants, adults, and to families far above poverty whose parents can afford or already have private health insurance.  A 2007 Congressional Budget Office analysis found that for every 100 children enrolled in SCHIP, the number of children enrolled in private insurance dropped between 25 and 50 children.

The priority of SCHIP should always be to serve those children most in need of assistance.  State budgets nationwide are already overwhelmed and are unable to meet many of their funding commitments, where California alone projects a 2009-2010 budget shortfall of over $27 billion. Expanding SCHIP eligibility is expected to double the cost of SCHIP, compounding state budget challenges, while the poorest of children could lose access to their only source of health care.

The doubled cost due to expansion will be paid for through increased federal tobacco taxes. However, this revenue source will not last.  The percentage of Americans who smoke has been dropping for decades and studies show that raising the prices of cigarettes will lead to less smoking.  It is irresponsible to fund a children’s health program, particularly one targeted at vulnerable children, with a declining revenue stream. 

Improving health care coverage is important, and I support strengthening efforts to extend SCHIP services to poor, uninsured children.  Congress should focus its attention on the core SCHIP mission rather than irresponsibly crowding out private insurance and committing states to unmanageable additional spending that puts the entire SCHIP program at risk.



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