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Update: State Children’s Health Insurance Program (SCHIP)
National Association of Health Underwriters (NAHU) September 25, 2007, The House of Representatives passed the compromise bipartisan agreement on the State Children’s Health Insurance Program (SCHIP) reauthorization, H.R. 976, by a vote of 265 in favor, 159 against. This legislation was very similar to the original Senate-passed SCHIP measure, and it contained all of the NAHU-supported premium assistance provisions. The compromise measure also did not contain any cuts to the Medicare Advantage program, but instead funded the measure completely through an increase in the federal tobacco tax. There were 45 Republicans voting in favor, and 8 Democrats voting against, but the margin was obviously short of the 290 YEA votes needed to override a promised veto from President Bush.
As a result, the political drama concerning the future of SCHIP and premium assistance will continue for the time being. The next step is that the Senate will take up and pass the bill. Because the House and Senate will have voted on identical language there will be no need for a conference to work out the differences. Following the Senate vote, H.R. 976, as amended, will be enrolled and sent to the President.
The President will veto the bill, and the House is expected to sustain the veto. Assuming the House sustains the veto, language extending the current SCHIP program is expected be wrapped into the continuing resolution that Congress will take up and pass by this Friday. Failing that, the extension of SCHIP could be advanced as a free-standing bill. The funding for SCHIP will expire on September 30, so this issue must be resolved quickly. Although the vast majority of states have indicated that they do have enough funds left in their coffers to keep the programs operating for at least the short-term, the political ramifications of SCHIP funding expiring would be huge.
Once short-term funding relief is passed, the House and Senate will have to go back to the drawing board and craft a measure that will both pass both Houses and that the President is willing to sign. The time-frame for this process will be determined largely by the duration of the funding extension measure. NAHU will continue to advocate for premium assistance provisions and responsible funding for SCHIP that does not in any way impact health care coverage options for seniors.
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