SCHIP. H.R. 2 would reauthorize the State Children’s Health Insurance Program, commonly referred to as SCHIP, for over four and a half years and increase the funding for the program by $32.8 billion. SCHIP is designed to provide health insurance to children of families whose incomes are up to four times above the poverty level (and therefore would have too much income to qualify for Medicaid), yet would have little income to buy private insurance. Often SCHIP crowds out private insurance: the Congressional Budget Office found that between 25 and 50 percent of children who enroll in SCHIP dropped their private insurance to get “free care.” Because SCHIP, like Medicaid and Medicare, pays doctors and hospitals only a fraction of the actual cost of care, the unfunded costs get passed to holders of private insurance. Additionally, SCHIP would apply to 400,000 to 600,000 children of legal immigrants whose sponsors had agreed to cover the children’s healthcare needs for at least five years after arriving to the United States.
The Senate passed H.R. 2 on January 29, 2009, by a vote of 66-32 (Roll Call 31). We have assigned pluses to the nays because federal healthcare programs are unconstitutional and would likely lower the quality of healthcare.
