Taken from Congress.org

Congress To Vote Again on SCHIP Expansion

The House and Senate will both vote on a compromise SCHIP bill this week. The bill would increase spending on the program by $35 billion, exceeding President Bush's request by $30 billion. The President has said that he will veto any spending legislation that exceeds his request. The previous House version increased spending by $50 billion.

The bill raises the tax on a pack of cigarettes by 61 cents in order to pay for the spending increase. It also sets standards for what percentage of lower-income children must already be covered before states can begin to expand coverage to children living in families at 300 percent of the poverty level. The Senate is expected to pass the bill with a veto-proof margin, but the House margin remains unclear.


President Bush Threatens Veto of SCHIP Legislation

Last week President Bush threatened to veto any legislation on the State Children's Health Insurance Program (SCHIP) that expands coverage to children in families earning more than 200 percent of the poverty level. He urged Congress to pass a temporary extension that he can sign before the current program expires at the end of the month. Bush also said that the tax increase on tobacco products used to fund the increase in spending is unnecessary.

On the other side, Congress has issues with a rule recently issued by the administration mandating that states must prove coverage for 95 percent of all children living under 200 percent of the poverty line before they can expand health coverage to children living over 250 percent. Detractors say the standard imposed by the rule is almost impossible to meet.