Commentary, Posted: 10/17/07
Bushís veto of SCHIP is certainly no surprise
By Charlie Warner
Argus Editor
In his seven very memorial years in office, President George W. Bush has issued four vetoes. By handing down his fourth veto, on October 3 of this year of H.R. 976, President Bush derailed a bipartisan bill passed by Congress that would have expanded the State Childrenís Health Insurance Program (SCHIP). This is a federal program that provides health insurance to millions of uninsured children from middle class families.
The program provides health insurance for families who earn too much money to qualify for Medicaid, yet cannot afford to buy private insurance. The program was created to address the growing number of children in the United States without health insurance. At its creation in 1997, SCHIP was the largest expansion of health insurance coverage for children in the United States since Medicaid began in the 1960s.
SCHIP covered 6.9 million children at some point during federal fiscal year 2006, and every state has an approved plan.
Some states use SCHIP funds to cover the parents of children receiving benefits from both SCHIP and Medicaid, pregnant women, and other adults.
The proposal President Bush vetoed would have increased coverage to over 4 million more participants by 2012, and also would have phased out most state expansions in the program that include any adults other than pregnant women. The price tag for insuring over 4 million more American children and pregnant women would have increased from the current $5 billion per year to $35 billion over the next five years.
The expansion of the SCHIP program would have been funded by an over 100 percent increases in cigarette and cigar taxes, coming to an increase of 61 cents per pack of cigarettes nationwide.
While the original Democratic proposal was compromised by cutting the program originally proposed in order to get the Republican votes to pass it, President Bush has asked for further compromise on the program. The President said he vetoed the bill because he believed the bill would "federalize health care", expanding the scope of SCHIP much farther than its original intent.
In 2007, researchers from Brigham Young University and Arizona State found that children who drop out of SCHIP cost states more money because they shift away from routine care to more frequent emergency care situations. The conclusion of the study is that an attempt to cut the costs of a state program could create a false savings because other government organizations pick up the tab for the children who leave SCHIP and later need care.
In a 2007 analysis by the Congressional Budget Office, researchers determined that "for every 100 children who gain coverage as a result of SCHIP, there is a corresponding reduction in private coverage of between 25 and 50 children."
One wonders if the Presidentís veto of the SCHIP bill had any connection with the fact the health insurance industry would be taking a major hit if another four million potential customers would suddenly be lost?
Budgeting a healthcare program for Americaís youth with a $35 billion price tag nearly takes oneís breath away. But letís consider two things:
ïThe program, which lawmakers from both parties have supported, would receive a major shot in the arm with a 61-cent tax increase on every pack of cigarettes sold in this country. In 2006, more than 20 billion packs of cigarettes were purchased in the U.S. That translates out to $12.2 billion that would go towards funding SCHIP.
ïThe war in Iraq is costing this country over $300 billion a year. When you figure in the war in Afghanistan, and the amount of foreign aid we ship off to Israel each year, weíre talking about more than a $1 billion per day.
So whatís more important- approving a bill that will insure American kids receive proper health care, or blowing a cool billion per day in the Middle East?
Seventy-two percent of Americans polled feel the SCHIP bill should be passed, including 61 percent of Republicans.
We know where our President stands. Thank God heís only got 14 more months left in the White House!!!
Caledonia Argus
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E-Mail: editor.argus@ecm-inc.com
