SCHIP Update
JANUARY 8, 2008

After two presidential vetoes and months of debate, in late December Congress passed an SCHIP extension, just days before the program was scheduled to run out. The extension, part of a large health care bill called the Medicare, Medicaid and SCHIP Extension Act of 2007, extends the current SCHIP program until March 31, 2009. President Bush signed the legislation into law on December 29.

This shorter-term extension reflects the fact that – in the end – an agreement on a full, five-year reauthorization could not be reached. Congress passed two SCHIP bills in the autumn of 2007, but both were vetoed by President Bush. An October attempt by the House of Representatives to override the President’s first veto fell short. Even though an extension is already in place, the House of Representatives had schedule a January 23 vote to try and override the President's second veto, which came in December. If the veto-override vote fails, the extension will stay in place. The current extension essentially preserves the current program and likely postpones the next full-scale reauthorization debate into the first few months of the next president’s term.

The shorter extension was a concession for those, including the ELCA, who had worked hard to see a full, five-year reauthorization that included enough additional funds to provide health coverage for about four million children who are currently eligible for the program but not enrolled. While we are thankful that the current extension includes enough funding to ensure that none of the 6 million children currently enrolled will be dropped from their coverage, unfortunately, it does not allow funding to add any additional uninsured children who are eligible for the program but not enrolled. Another point of concern about the extension is that fact that it does not address what we feel is a harmful policy that limits SCHIP eligibility to families who make less than 250 percent of the federal poverty level. Currently, states make their eligibility determinations, and some states cover families above 250 percent of the federal poverty level.

On the positive side, the 2009 extension does not contain several harmful policy changes that were proposed. For example, the extension allows states that have covered low-income, uninsured adults using CHIP funds to continue to do so, and it omits a proposed onerous citizenship documentation requirement. The new bill also temporarily blocks bad Medicaid regulations that deny rehabilitative and school-based services for low-income people who depend on them.

Even though the extension is through March of 2009, many expect that SCHIP will again be raised for debate in 2008. SCHIP champions in the House and Senate remain committed to their goal of seeing health care for 10 million uninsured American children. We will keep you posted of any developments in 2008, and thank you for all of your support during the SCHIP debate in 2007.