Third in the Series, “CHIP-ing Away at the Myths,” Focuses on Myths about Irresponsible Budgeting

Series Counters False Statements against the Children’s Health Care Legislation

Washington, D.C. – Families USA, the national organization for health care consumers, today released the third in a series of documents that aim to dispel the myths about the State Children’s Health Insurance Program (CHIP) legislation that have been propagated by the Bush Administration.

The third myth in the series, “CHIP-ing Away at the Myths,” deals with the myth that this bill will spend too much money and is therefore irresponsible budgeting:

• This bill will not increase the federal deficit. It is fully financed by a 61 cent per pack increase in the tobacco tax.

• Using a tobacco tax to pay for expanded children’s health coverage is doubly beneficial: It will pay for the health care of low-income children in need, and it will prevent approximately 2 million children from smoking.

• The President’s budget—which would add only $5 billion to CHIP over the next five years—is truly irresponsible budgeting. It fails to account for the increasing cost of health care over the next five years, and it would cause nearly half a million children who are currently enrolled in the CHIP program to lose coverage. Astoundingly, it would do nothing to cover any of the millions of children who lack health insurance today.

“At the same time that the Bush Administration opposes new funding for CHIP, it is seeking $190 billion in funding for the Iraq war,” said Ron Pollack, Executive Director of Families USA. “In so doing, it proposes to spend more money in two weeks for Iraq than it is to spend in a full year for America’s children. This is clearly a misplaced priority that deserves to be changed.”

###

Families USA is the national organization for health care consumers. It is nonprofit and nonpartisan and advocates for high-quality, affordable health care for all Americans.

1201 New York Avenue NW, Suite 1100 · Washington, DC 20005
202-628-3030 · Email: info@familiesusa.org · www.familiesusa.org