State Children's Health Insurance Funds to Expire; U.S. Congress Deliberates

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A $50 billion budget resolution for SCHIP, the State Childrens Health Insurance Program, is currently before The US Senate Finance Committee.

The resolution has already made it through first rounds in the House and Senate.

If the bill gets to the President and he signs it, New Hampshire would gain an additional $168 million over five years to provide health insurance to uninsured children.

And that, says Tricia Brooks, would help the state cover an additional 10 thousand uninsured kids.

Brooks runs New Hampshire Healthy Kids program, which administers the state's SCHIP funds.

“The Federal financial partnership through SCHIP is critical to reaching that goal. So this is a first step by Congress by pledging the $50 billion in new funding and now we're waiting on Congress to act to fulfill the pledge.”

But President Bush is proposing only $5 billion in additional funds for SCHIP.

And the Administration wants to reduce the amount the feds pay for families that make over twice the federal poverty level.

That’s about $34,000 dollars for a family of three.

Brooks says if those income restrictions go through, many New Hampshire families could lose coverage.

“New Hampshire currently covers kids at three times the poverty level and that is necessary because of the high cost of living in New Hampshire. If we were to lose the enhanced federal match on those kids we would lose $2 million a year, $10 million over the 5-year reauthorization period.”

Brooks added that setting nationwide income limits for SCHIP doesn't make economic sense.

“What $34,000 will buy in Ft. Bend Texas costs $54,000 in Rockingham, New Hampshire. So that clearly indicates that we need to cover kids at higher income levels just to make it a level playing field.”

But Dennis Smith, who is a director for state operation at the U.S. Centers for Medicare and Medicaid, defends President Bush's plan.

He says it simply refocuses SCHIP on its original intent.

“SCHIP was created specifically for children who lived in families with incomes above Medicaid levels so but up to and target was 200% of poverty understanding that if you were Medicaid eligible you were to be enrolled in Medicaid.”
Smith added that New Hampshire could still insure children from the higher income families - if it uses more state tax dollars.

He adds that President Bush's $5 billion is enough to keep about 1 million kids from losing SCHIP coverage.

As for the 9 million or so children who are uninsured nationwide, Smith says that many of them are eligible for Medicaid or can afford to buy insurance.

And he referred to families living at the 200% poverty level who don't ask for SCHIP coverage.

“10 million kids in families the families have said yes that is our responsibility and we are paying for our child's health insurance.”

To make these budget issues even more complicated, Congress must find a budget neutral method to fund the programs.

So proposals include an increase to the federal tobacco tax, a decrease in reimbursements for Medicare providers and cuts to other programs.

After the Senate Finance Committee marks up the legislation, it's expected to move to the full Senate in early July and then back to the House.

New Hampshire's Republican Senators John Sununu and Judd Gregg didn’t return phone calls for comment on the $50 billion budget resolution.

But a spokeswoman for Sununu said that he had voted against cutting SCHIP funds provided to New Hampshire.

For NHPR News, I'm Dianne Finch