In Vermont, federal SCHIP funds are used along with state funds to provide health insurance coverage for over 3,000 children in families with incomes from 225% to 300% of the federal poverty level, as part of the Dr. Dynasaur Program.  As many of you know, Congress recently passed a bill to re-authorize SCHIP funding that was vetoed by President George Bush.

On Friday, the House voted on a new modified version of the SCHIP bill. The bill fell 7 votes short of a veto-proof majority. This bill is expected to be voted on in the Senate next week. The President has, however, said he will veto this bill as well.

The bill, HR 3963, is new legislation that is a modified version of the SCHIP bill passed by the House and Senate last month. The revised bill still provides $35 billion in new spending for SCHIP and will still cover close to 4 million more children nationwide.

Modifications were made, however, to address concerns raised by the President and certain Members of Congress. The revised bill would:

• Further increase the focus on covering the lowest income children - it would cap SCHIP coverage at 300 percent of the federal poverty level (which is the Vermont program's current level.)
• Tighten the citizenship documentation options to ensure ineligible children are not enrolled in Medicaid and SCHIP, without reducing enrollment among eligible citizen children
• Add additional steps to discourage families that have private insurance from dropping it to obtain SCHIP.

It is unclear what will happen next if the President vetoes the bill and Congress sustains the veto.

The good news for Vermont families is that Governor Jim Douglas and the Legislature have made a commitment to continuing Dr. Dynasaur coverage at current levels, regardless of Congressional action.  However, it would be more costly to the state if federal action reduces the existing program. 

For more information, contact:

Kay Van Woert
Policy Specialist, Kids Are Priority One Coalition
Tel. (802) 985-5668
vanwoert@aol. com