By Crystal Swann
November 12, 2007

For the second time this year, the House and Senate passed legislation aimed at reauthorizing the popular Children’s Health Insurance Program (SCHIP). The bill, H.R. 3963, would increase the program’s funding level by $35 billion increase over five years by implementing a 61 cent per pack increase in the cigarette tax. President Bush has vowed to veto this version should it reach his desk.

House negotiators attempted to make changes to the new legislation with the hopes of convincing enough Republicans to vote for the bill. Opponents have stated the changes didn’t go far enough and although the bill passed the House (vote of 265-142), it didn’t garner a veto proof margin. The Senate quickly passed the bill by a vote of 64-30.

The points of contention continue to be eligibility levels and stronger restriction on access to SCHIP by illegal immigrants. In October Senator Chuck Grassley (attempted to address some of the misconceptions about increased eligibility levels for SCHIP: “…the congressional agreement does not raise the eligibility level for CHIP… Under current law, the decision to approve state requests to change CHIP eligibility rests with the Administration not Congress. No state has received approval from the Administration to expand CHIP eligibility to 400 percent of poverty,” stated Grassley.

On the issue of illegal immigrants, opponents of the current bill want stronger language against illegal immigrants receiving benefits. The current agreement attempts to address that by requiring for the first time that CHIP programs establish beneficiaries’ citizenship to enroll — a requirement that currently applies only to Medicaid. However, opponents contend these measures aren’t enough and want more compromises.

As political pressures continue to increase, many members of both sides of the aisle are eager to reach an agreement. The current legislation, under which the program is operating, expires on November 16. Lawmakers will have to pass another extension of the program as they try for a third time to craft legislation that will attract more House republican support.