Issues

Health

House approves SCHIP bill-Includes key provision for Washington state

25 September 2007

By a vote of 265 to 159 just before 9 p.m. EDT, the House approved legislation that would renew and expand a popular health insurance program for low-income children. It included a key provision that would allow Washington and 10 other states to use 100 percent of federal funds under the State Children's Insurance Plan (SCHIP) to cover kids just above the poverty level; until now, they were limited to 20 percent of those funds.

U.S. Rep. Jay Inslee (D-Wash.), the only member of the Washington state House delegation to serve on the House Energy and Commerce Committee with jurisdiction over the popular health-care program, lauded the bill's passage, "In Washington state alone, this bill could halve the number of uninsured kids. It's fundamental, fair and fiscally responsible - that's why it has bipartisan support in both chambers of Congress and in statehouses across the nation.

"Now it's up to one man in the White House to sign it into law," continued Inslee, who successfully won a permanent 100 percent fix for the 11 so-called qualifying states in a broader SCHIP bill that was passed by the House in early August. The $35 billion measure approved today funds the 100 percent fix for the five-year duration of the bill. It mirrors a provision included in a narrower Senate SCHIP bill that won approval in the upper chamber this summer.

SCHIP initially was authorized in 1997 to expand health insurance to children just above the federal poverty level. Children and other Americans under the poverty line generally can get coverage under Medicaid.

Until now, Washington and 10 other states were penalized for expanding health insurance coverage to children in families with incomes just over the poverty line before the popular SCHIP program was established a decade ago. Since enactment, they've had to fight every few years to spend even a fraction of unused federal funds to cover children at this income level. States that didn't cover these children when SCHIP became law have had no such limitation on the use of federal SCHIP funds.

For the current fiscal year, Washington state was allotted almost $80 million from the SCHIP fund, of which they expect to spend half because only $16 million can help low-income children get health insurance. The other $24 million of that allotment would fund programs for pregnant women and cover other costs. If the 20 percent restriction is removed, the state forecasts it could help cut by half the number of uninsured children eligible for public coverage under Washington state law.

If SCHIP is not reauthorized before Sunday, children across the nation could lose their health insurance. To beat this deadline, the Senate is expected to pass later this week the same bill the House approved today. The legislation then would go to the president to be signed in to law.

President Bush has said he would veto the measure, despite broad, bipartisan support in Congress and endorsements from the American Medical Association, National Association of Children's Hospitals, American Nurses Association, and U.S. Conference of Mayors, among other organizations.

If the president follows through with his veto threat, the House and Senate likely will approve a temporary measure to continue funding the important program at current levels for several weeks to allow for veto override votes and possibly negotiations on another SCHIP reauthorization package.

Click here to read the bill.