Republicans and Democrats are split over how to reauthorize funding for a program that provides health insurance to more than 10 million children, creating partisan fissures in a traditionally bipartisan program.
Funding for the State Children’s Health Insurance Program (CHIP) expires at the end of September. House and Senate Republican leaders issued a draft bill earlier this week that extends program funding but doesn’t say for how long. More controversially, the GOP proposal would eliminate public benefits from some wealthier recipients.
House and Senate Democrats introduced their own CHIP reauthorization legislation that extends funding for four years and doesn’t make any drastic changes.
The Republican draft, however, floats several provisions that would change state oversight, eligibility and other parts of the program. One such provision would eliminate coverage for families with incomes over 300 percent of the federal poverty level. The draft also reduces coverage for some families at or above 250 percent the federal poverty level.
The proposal’s sponsors — who include Rep. Fred Upton, R-Mich. and Sen. Orrin Hatch, R-Utah — say the cuts are needed to refocus the program for providing additional help to low-income families.
However, it didn’t sit well with some Democrats.
“Any proposal that reduces coverage for our nation’s children is a nonstarter,” said Sen. Sherrod Brown, D-Ohio, in a statement to the Washington Examiner. Brown sponsored the Senate bill to reauthorize the program introduced earlier this month, which was supported by a majority of the Democratic caucus.
Other Democrats held their fire, noting it was a positive sign there is a starting point with the GOP.
“CHIP has a long history of bipartisan support, and I look forward to working with my colleagues to reauthorize this critical insurance program,” said Rep. Gene Green, D-Texas. Green has sponsored House legislation on the issue.
Health advocates were generally pleased that the discussion on funding is at least starting.
“The discussion draft is good to see,” Ed Walz, vice president of the bipartisan advocacy group First Focus, told the Examiner.
Walz said First Focus does have reservations about parts of the draft, including the coverage of kids above 300 percent poverty level, but the organization looks forward to working with Congress on those issues.
Families USA expressed a similar stance in a statement on Wednesday.
Walz said it is important for momentum to reauthorize the program to start now, even though it doesn’t expire until this fall.
State legislatures are working on their budgets now for the next fiscal year, and need to know whether the program will be funded, he said.
The National Governor’s Association sent a letter last week to lawmakers emphasizing the need for fast reauthorization, according to First Focus.
