Presidential Veto Of SCHIP Expansion Legislation Likely To Stay

Whether President Bush’s second veto of bil HR 3963 will be overriden is to be voted on Wednesday by the house. This bill was to expand SCHIP, however supporters of the bill do not have a two-thirds majority. The legislation was to expand the program by covering 10 mn children and spending was to be increased by $35 bn over a period of 5 years. The program was to be funded by an increase in federal cigarette tax by 61 cent per pack.

This bill would have also limited coverage to children from families with annual incomes below 300% of the federal poverty level. This bill was first vetoed by Bush in October 2007 in another form. According to The San Francisco Chronicle if unemployment rates increase, more families will depend on SCHIP this year.

In a report released by Democrats, SCHIP and Medicaid enrollment increased by 5% to 9% as unemplyment increased. If the employment decreases just as it did after the 2001 recession, about 1 million more children would be enrolled in Medicaid and SCHIP every year. If the veto was overriden, the funding to cater to the recession driven demand would be available.

The Hill says that the coupling of SCHIP with the troubled economy may “fail to resonate in time” and the Democratic leaders may not have the additional votes to override the veto. Meanwhile Democrats and some Republicans are asking for a temporary increase in federal Medicare matching rates to provide money to the states.