What Is SCHIP Legislation?

SCHIP, or the State Children's Health Insurance Program legislation, is designed to provide coverage to uninsured, low-income children.

History

• The bipartisan SCHIP bill, written by former Democratic Senator Edward Kennedy and Republican Senator Orrin Hatch, was signed into law on August 5, 1997 by then President Bill Clinton.

Funding

• SCHIP is funded by federal taxes on tobacco products with the initial bill increasing the tax from 24 cents to 67 cents. The 2009 reauthorization increased the taxes on cigarettes, chewing tobacco and other tobacco products to support the 32.8 billion dollar expansion of the program.

2007 Reauthorizations

• In 2007, SCHIP reauthorization was vetoed twice by President George W. Bush who thought expanded coverage would lead to federal control of health care. A funding extension was eventually signed into law by President Bush on December 1, 2007.

2009 Reauthorization

• In 2009, Democratic President Barack Obama signed 32.8 billion dollar expansion to SCHIP allowing 4 million additional children to be covered.

Criticism

• Critics decry SCHIP as harmful to the private insurance industry citing a 2007 CBO study that concluded because of better, lower cost benefits "for every 100 children who gain coverage as a result of SCHIP, there is a corresponding reduction in private coverage of between 25 and 50 children."

Positive Impact

• Supporters say SCHIP has decreased costs to government by treating children through routine, lower cost doctor's visits instead of uninsured children being treated through expensive, frequent emergent care situations.