Myth vs. Fact: Meet the New SCHIP Bill, the Same as the Old SCHIP Bill
Majority's Latest SCHIP Bill Still Insures Adults, Illegal Immigrants at the Expense of Low-Income Children

Washington, Oct 25, 2007 - The House Majority has made some cosmetic changes to their flawed State Children’s Health Insurance Program (SCHIP) bill, but in reality the Democrats’ latest effort doesn’t address House Republicans’ substantive concerns with their original measure – and Democratic leaders have continued to refuse to allow real negotiations requested by rank-and-file Republicans in hopes of producing a bipartisan compromise. The majority’s “new” bill is nearly indistinguishable from the previous version of the bill that was rammed through Congress and vetoed by President Bush. For example:

  • The “new” bill still fails to put low-income children first.
  • The “new” bill still insures adults and illegal immigrants.
  • The “new” bill still forces some two million children from private health insurance to government-run care.
  • The “new” bill still contains a massive tax hike and district-specific earmarks and pork projects.
  • And according to the Congressional Budget Office (CBO) the bill even COSTS MORE and COVERS FEWER CHILDREN than the Majority’s original SCHIP legislation.

After weeks of playing political games on the backs of low-income children, the Majority has decided to keep on playing. By failing to address House Republicans’ substantive concerns with their original flawed SCHIP measure, Democrats have shown they just aren’t ready to send the President a responsible, bipartisan bill that puts low-income children first. Here are some of the most glaring myths propagated by those attempting to sell this latest SCHIP measure as something different – and facts to expose them:

MYTH: The Majority’s latest SCHIP bill serves low-income children first.

FACT: Rather than requiring that poor children be served first before the program can be expanded beyond 200 percent of the federal poverty level, the Majority’s bill expands the program to cover those at 300 percent of the poverty level. The bill also contains an “income disregard loophole,” which allows states to define “family income” as they see fit and intentionally ignore tens of thousands of dollars worth of income for purposes of SCHIP eligibility. This loophole could permit a family earning more than 300 percent of the poverty level to receive benefits. In fact, under the bill, a family of five in New Jersey making $84,455 per year would still be eligible for SCHIP.

MYTH: The Majority’s latest SCHIP bill serves children only – not adults.

FACT: Though the legislation phases childless adults out of the program within one year, parents are still eligible permanently. Even the Congressional Budget Office (CBO) says 10 percent of SCHIP enrollees will be adults in FY 2012. With 700,000 adults currently enrolled in SCHIP – even though a half million eligible children are not currently enrolled in the program – the fact that the Majority’s bill explicitly allows SCHIP to continue ensuring adults is irresponsible.

MYTH: The Majority’s latest SCHIP bill does not force children out of private health insurance.

FACT: Virtually identical to the legislation vetoed by President Bush, CBO estimates that the Majority’s latest bill continues to force two million children who already have private insurance onto government-run SCHIP.

MYTH: The Majority’s latest SCHIP bill only covers low-income American children, not illegal immigrants.

FACT: The legislation weakens Medicaid citizenship verification standards included in the Deficit Reduction Act by adding Social Security Numbers – a method even the Social Security Administration admits does not prove citizenship eligibility. It also includes an “Express Lane” program that removes inadequate citizenship verification safeguards in an effort to sign people up faster, no matter their legal status.

MYTH: The Majority’s latest SCHIP bill focuses solely on the SCHIP program.

FACT: The Majority’s original SCHIP bill included district-specific earmarks and pork projects, and guess what? The latest version does as well. The earmarks haven’t been removed.

MYTH: The Majority’s latest SCHIP bill insures the same amount of low-income children as their original SCHIP bill, while spending the same amount of money.

FACT: According to CBO, the new legislation (H.R. 3963) actually covers 400,000 less children than in the Majority’s original bill (H.R. 976). Amazingly, the number of insured children drops under the new bill even though the cost of the bill has increased – by a half billion dollars, according to CBO ($35.4 billion for H.R. 3963 vs. $34.9 billion for H.R. 976 from FY 2008-2012).

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