The Alan Katz Health Care Reform Blog

Health Care Reform From One Person's Perspective

State Children Health Insurance Program Problems Don’t Bode Well for Health Care Reform

Posted by Alan on September 27, 2007

Most of the health care reform packages likely to be considered by the Legislature during its current special session will include provisions to expand the State Children’s Health Insurance Program (SCHIP). SCHIP is known as Healthy Families in California. So the political drama unfolding in Washington concerning SCHIP is critical to the state. It also should serve as a warning, especially to those advocating a central role for the government in delivering health care.

Here’s where SCHIP currently stands: On September 25th the House of Representatives reauthorized SCHIP on a relatively bipartisan vote (45 Republicans voted for the bill; eight Democrats voted against it).  The legislation, H.R. 976, provides additional monies for the program and, most importantly, continues the program past it’s sunset date of September 30th — yes, as in this coming Sunday. The Senate will now consider the bill and is expected to pass it as written. This means no conference committee will be required, the measure simply goes to the President’s desk. So far, so good.

However, President George Bush has committed to vetoing the bill. One reason is the cost: the President wants to increase SCHIP spending by $5 billion over five years; Congress is seeking to increase spending by over $35 billion during this time-frame. More significantly, the White House objects to expanding eligibility for the program beyond it’s current income levels, arguing that doing so is “an incremental step toward the Democrats’ goal of a government-run health care system.” Even with Republican support, the House is unlikely to overturn the President’s veto. HR 976 passed with 265 votes in favor; it takes 290 votes to override the President.

The good news is that the SCHIP program is unlikely to end on September 30th. Congress will either tack on short term funding to an existing continuing resolution. If that doesn’t interim funding could be passed as stand-alone legislation. Then the battle for long-term continuation of the program will start-up again.

There’s more than a political soap opera going on here. What we’re also witnessing is a warning. When the government controls health care, it means health care is political. Decisions are not made to respond to market pressures or consumer demand, but to satisfy the politics of the moment. There likely will be an short-term extension of SCHIP. But then again, maybe not. Remember when President Bill Clinton and the then-Republican Congress shut down the federal government they reached a budget impasse?

2007 has provided advocates of government-run health care with lots of cautionary tales: the California budget stalemate; a California budget which slashes funding for mental illness programs and outreach for health programs like Healthy Families; and now the veto of SCHIP funding. There are problems with the current system, but I can’t help but believe that politicizing health care would only make things worse.


2 Responses to “State Children Health Insurance Program Problems Don’t Bode Well for Health Care Reform”

  1. […] The Alan Katz Health Care Reform Blog: State Children Health Insurance Program Problems Don’t Bode Well for Health Care Reform […]

  2. brendaturner said

    Thank you for blogging about Health Care Reform! The growing number of uninsured, now at over 47 million, the high cost of insurance and the release of the 2008 presidential candidates health care plans have brought the topic of health care reform to national headlines and prime time news.

    But what about the individual stories of American citizens facing a health care crises today? How do they navigate the broken health care system? At Outrageous we talk about the issues concerning individuals and small businesses. In addition to reporting on pending legislation and the record profits of pharmaceutical and insurance companies, we address the real life stories — emergency room care, mental health issues, drug abuse, obesity, preexisting conditions and children’s health. By letting our voices be heard-together we can find common sense solutions to reduce health care costs and increase access to quality health care for all.

    Outrageous Times is our monthly grass roots newspaper, dedicated to health care reform now and is distributed to over 20.0000 readers in Mercer County, WV and Tazewell, VA. The web site is a both a local and national health care resource. We would like to invite you and your readers to submit your stories, experiences, observations and opinions to Comments posted on are often reprinted in the Outrageous Times.

    Thanks in advance for your contributing your knowledge to

    Brenda Turner
    Outrageous Times

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