Senators Log Protest Of Administration's New SCHIP Rule

9/11/2007

Sens. Robert Menendez, D-N.J., and Gordon Smith, R-Ore., Monday sent a letter to President Bush, signed by 44 senators, asking him to withdraw a recent rule that places new requirements on states that want to give government health coverage to children living 250 percent above the federal poverty line.

The rule, issued last month, would require states to prove that 95 percent of all children under 200 percent of the poverty level are covered under the State Children's Health Insurance Program before they can offer coverage to children at higher income levels.

It also would require children above 250 percent of the poverty level to be uninsured for at least a year before qualifying for SCHIP coverage.

"We agree that all states should be making an effort to identify and enroll low-income children in Medicaid and SCHIP," the letter said. But the new rule "requires states to meet unattainable enrollment levels and will only result in loss of coverage."

Five Republicans joined Smith in signing the letter: Sens. Olympia Snowe and Susan Collins of Maine, Arlen Specter of Pennsylvania, Norm Coleman of Minnesota, and Christopher (Kit) Bond of Missouri. Democrats signing on included top-tier presidential candidates Hillary Rodham Clinton of New York and Barack Obama of Illinois.

Sen. John (Jay) Rockefeller, D-W.Va., has issued a separate protest against the new requirements, noting that the rule is a big enough change that it should have been vetted through a formal regulatory process.

The Smith/Menendez letter also suggests that the administration should approach the policy change "as a formal rule under normal procedure with a notification and comment period."

On Friday, the administration showed a willingness to flex its muscle under the new rule, denying a request from New York to cover children at up to 400 percent of the poverty level.

That decision was met with condemnation by several Democrats and applause from Republicans who say SCHIP coverage should be targeted to kids at lower income levels.

It is unclear whether lawmakers will address the new SCHIP requirements in legislation reauthorizing the program. House Energy and Commerce Health Subcommittee Chairman Frank Pallone, D-N.J., wants to include language to halt the rule in an SCHIP conference report.

As House and Senate leaders continue to struggle with how they will reconcile vastly different bills on SCHIP, Republicans are bracing for a short-term extension that they say could also address the administration's new rule. SCHIP expires Sept. 30.

Democrats are not yet ready to give up on sending a full SCHIP conference report to the president before the expiration date, according to House Democratic Caucus Chairman Rahm Emanuel of Illinois. Asked about an extension of the current program, Emanuel told CongressDaily, "That's not an option." After a pause, he added, "That's not our first option."    By Fawn Johnson