Congress Approves Extension of SCHIP Program

Congress has approved an extension of the State Children's Health Insurance Program, or SCHIP, until the end of March 2009, providing a $1.6 billion increase for the program that should prevent states from running out of SCHIP funds for the next 18 months, according to analysts interviewed by AAFP News Now.

"This will allow states to maintain coverage for every child enrolled in the program, and it also gives them the ability to enroll anyone who is currently eligible for the program," said Christopher Spina, vice president of communications for First Focus, a bi-partisan family and children advocacy organization.

SCHIP is a joint federal and state program that provides health care coverage to 6 million low income and uninsured children and 600,000 uninsured adults who are not poor enough to qualify for Medicaid. Without the additional $1.6 billion in funding, 21 states are projected to run out of SCHIP money in 2008 and nine states will exhaust their SCHIP funds by March, according to Spina. With the additional funds, states should have enough money to maintain current coverage levels and also be able to cover the 3 to 4 million children not enrolled in SCHIP who are eligible for the program.

Congress passed the SCHIP expansion as part of a larger bill that will provide a 0.5 percent increase in Medicare physician payment rates for the next six months. HHS Secretary Mike Leavitt said President Bush is expected to sign the legislation, known as the Medicare, Medicaid, SCHIP Extension Act of 2007.

By endorsing an 18-month extension, Congress and the Bush Administration have removed SCHIP as an election year issue in 2008, giving lawmakers and the next president enough time to "fix the problems with the program," said Spina.