Washington, D.C.—Congressman Steve Buyer (IN-04) continues to stand for children of the working poor to see that those children that are in most need of healthcare are taken care of first.  Congressman Buyer opposed the State Children’s Health Insurance Program Reauthorization Act (SCHIP), H.R. 2, today because the measure, once enacted, would greatly expand the program and enable undocumented immigrants, adults without children, wealthier families, and children who already have private insurance to enroll into SCHIP.

The program was initially created by a Republican lead Congress to give states federal funds to provide healthcare to low-income, uninsured children.

“My Republican colleagues and I sent a letter to Speaker Pelosi regarding the concerns that we have with the SCHIP program and what issues needed to be addressed in the reauthorization of the program.  The top issue was to provide for the eligible low-income children first,” said Buyer.  “Low-income families continue to face more economic insecurity, so now more then ever, it is important to provide access to affordable heath care coverage. The bill as passed would require low-income, uninsured children to compete against wealthier families and adults for limited healthcare dollars.”

Congressman Buyer voted for the Republican Motion to Recommit H.R. 2, which amends the bill by striking the flawed and expanded underlying text with the current SCHIP program. The Motion to Recommit failed passage by a vote 179 to 247.  The Republican Motion to Recommit (MTR) includes:

·       Full funding of the SCHIP program for the next 7 years, ensuring healthcare coverage for low-income families through FY2015.  (The Democrat Majority’s     reauthorization bill only provides funding for just over 4 years.)

·       All current SCHIP-enrolled children will remain on the program.

·       Puts poor kids first by making sure they have coverage.  Specifically, the MTR language holds states accountable for not finding and enrolling their uninsured, low-income children.  Each year, states will be required to report to the Secretary of HHS on how they intend to ensure that at least 90%  of their children with family incomes under 200% of the federal poverty level ($42,400 for a family of four) have healthcare coverage (public or private).  States will also be required to demonstrate that they have met this 90% coverage target before they are able to shift their enrollment activities to higher-income families.

·       Maintains the requirement in current law that states verify the identity and citizenship status of Medicaid applicants and prevents illegal aliens and other unqualified individuals from fraudulently gaining access to taxpayer-funded programs.

·       Preserves limited SCHIP dollars for uninsured low-income children by preventing States from abusing the income-disregard loophole in current law.  Federal funds will be reserved for families with incomes under 300% of the federal poverty level ($63,600 for a family of four).

·       Prevents the Democrat Majority’s $72 billion plus tax increase by providing a stable funding source that does not further burden American families during our current economic instability.

The Democrats will fund the expanding program by increasing the federal tobacco tax by 61 cents, which is a declining revenue base.  To pay for the expansion there will need to be 22.4 million new smokers to raise the needed tax revenues or the Congress will have to exclude millions of in need children off of health insurance or raise taxes on all Americans by tens of billions of dollars.

“The expanded SCHIP program will divert resources away from providing healthcare to children with the most need and give that priority to higher income children and adults many of whom already have private health insurance,” Buyer said.  “In addition, Democrats will need 22 million Americans to begin smoking to help pay for health insurance for others—it makes no sense.”

Indiana has run a responsible SCHIP program since it was created in 1997 by the Republican Congress.  Indiana has the ability to generate $300 million in new revenue for the SCHIP Reauthorization, but the most our state would receive in return is $50 million.  By enacting this measure, Congress is asking Indiana to carry the financial burden of the states who have not carefully managed their own efforts to insure children in need and often have grown this child health insurance program to include adults and middle income families.

“The passage of the SCHIP Reauthorization act will hit Indiana with a net loss of at least $250 million a year. That $250 million will now go to other states that have not been responsible in managing their efforts to ensure the coverage of in need children, while many of our own Hoosiers will go without healthcare,” commented Buyer.

On December 19, 2008, a clean extension of the SCHIP program to March 31, 2009, was passed—this extension did not expand the program to those who were not low income, uninsured children.   H.R. 2 is rushed legislation by the Democrat Majority that did not hold a single committee hearing or allow amendments to be offered on the bill.  Congress needs to work in a bipartisan manner in order to thoughtfully develop a long-term reauthorization of SCHIP.

A nation faced with economic insecurity, Congressman Buyer urged lawmakers that now is the time to be putting money and benefits in the hands of low income families, not making the families pay more taxes.

“Creating higher taxes, which H.R. 2 will do, will only generate more government spending and will further increase the deficit—something the nation can not afford to do.  Congress needs to make sound investments when we consider spending federal funds to stimulate the economy,” Buyer said.

The SCHIP reauthorization bill will also decrease access to the nation’s health care system.  H.R. 2 will close many doors for hospitals to expand their care.  Hospitals with any physician ownership will be restricted from any expansions in the future; regardless of the needs of the communities they serve.  Physician owned hospitals have proven to be very efficient and cost-effective additions our nation’s health care system.

“Along with our community hospitals, these physician-owned hospitals ensure that Americans have access to the care that they need while the hospitals also return a net community benefit of almost eight times the return of non-profit hospitals through uncompensated care and tax payments,” added Buyer.

Congressman Buyer spoke on the House floor against the SCHIP reauthorization bill saying, “The bill before the House today is nothing more than another step toward single-payer, government run health care.  This bill, according to the Congressional Budget Office, will succeed in putting 900,000 new children and adults on the government roles.  Approximately 50 percent of these children and adults already have private health insurance and will be pulled out of private health care to be placed on restricted, and often unaccepted, government-sponsored health insurance paid for by other taxpayers.”

Congressman Buyer voted for an amendment to continue to focus the program on low income children.  He opposed the bill on final passage. H.R. 2 passed the House of Representatives by a vote of 289 to 139.

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