(Nov. 9, 2007) On October 18, the U.S. House of Representatives failed to override the president's veto of the reauthorization of the State Children's Health Insurance Program (SCHIP). One week later, despite making significant changes in the legislation called for by House Republicans, the House again failed to secure the two-thirds majority needed to overcome yet another threatened veto. Then on November 1, the Senate passed the legislation with a veto-proof majority. Democratic Senators are now working with their House Republican counterparts to develop a compromise bill to help ensure a veto-proof majority in the House as well. They hope to have a compromise bill prior to the December 14 extension deadline for the SCHIP programs.
The President has said he will veto any legislation that will increase costs by more than $20 billion over five years. His previous level for veto was $5 billion over five years. This new number was discussed by Secretary Leavitt during an October 24 media roundtable event detailing the Administration's position. If the President makes good on his threat and the next veto override is unsuccessful, it will be very difficult to cover the 9 million children that the Democrats propose be covered.
In August of this year, the Bush Administration placed new limitations on the use of SCHIP funds for any but the very poorest children, arguing that offering SCHIP to more of the 9 million uninsured children would amount to "socialized medicine." However, the fact is that 70 percent of the program is actually administered through private insurance plans, and SCHIP funding currently represents less than 1 percent of federal health care spending.
The program provides health insurance to 6 million children who otherwise would not be insured. Forty-three governors have urged the president and congressional leaders to reauthorize this popular program.