Background Information

 About the State Children’s Health Insurance Program

The State Children's Health Insurance Program (known as SCHIP—or just plain CHIP) was created 10 years ago to provide health coverage to children whose families can't afford it but who also don't qualify for Medicaid (the public program that covers the lowest income Americans). CHIP has been enormously successful and covers millions of children today.

The original program was scheduled to expire on September 30 of this year. Without legislation to keep it running, CHIP could expire. Fortunately, Congress worked hard over the last year to pass legislation both parties could agree on. But the President vetoed that legislation, and millions of children could lose access to basic health care if Congress is unable to get a bill past the President.

The Veto: Myths and Facts

The President was given a choice when the new legislation was presented to him: stand with uninsured children and working families, or veto a bipartisan agreement that the majority of Congress—and Americans—support.

Despite the program's success and its popularity—among families with kids in the program, the public, and policymakers—President Bush is adamant in his objection to Congress’s proposal to help more kids. Instead, he would rather add a mere $5 billion to the program over the next five years. That's not even enough to keep all the children currently in the program covered, let alone cover a single additional uninsured child. The President says he opposes this bill because:

1. It costs too much;
2. It covers children from families that make too much money; and
3. The private insurance market can do a better job of covering these kids.

The facts are:

1. The President's request for Iraq war funding would spend more money in two weeks on the war than it costs to fund the health care of 10 million children for a year;
2. The bill actually makes it harder, not easier, for states to expand the program to higher-income families; and
3. If their parents could get—and could afford—private insurance, these kids would already have coverage.

President Bush has 24-7 guaranteed health care, yet he chose to block coverage for 10,000,000 kids who have no where else to turn.

For more information on how to counter the false statements made about the children's health insurance legislation, see CHIP-ing Away at the Myths.

The Bipartisan Bill that Congress Passed

Congress has passed a bipartisan compromise bill, the Children's Health Insurance Program Reauthorization Act of 2007, that will keep the program going for another five years. The bill also increases funding so that millions more uninsured children can be covered. Specifically, the bill would:

• Add $35 billion to the program over the next five years to cover approximately 10 million children: 6.6 million children who are currently enrolled and 4 million who will be uninsured without this bill. The majority of the children who will gain coverage under this bill are already eligible for coverage today, but CHIP needs more money to cover them.
• Better allocate funding to states to cover uninsured children and help avoid funding shortfalls that prevent children from receiving coverage.
• Give states new tools to reach out to eligible uninsured children and get them enrolled.
• Strengthen the CHIP benefit package by guaranteeing dental health and mental health benefits.

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