Tuesday, July 31, 2007
Posted by: John Campbell at 6:12 PM

The State Children's Health Insurance Program (S-CHIP) has been a hot topic in Congress over the past week and, as I write this, Democrat leadership is scurrying about to try and roundup the needed votes to pass this legislation. So what is the problem? Surely something that has the words "Children's Health Insurance" in its title should have no problem passing as Democrat Congress, right?

The problem is that the current legislation Democrat leadership is pushing would increase federal spending for the S-CHIP program by $50 BILLION over the next 5 years. And how are they going to pay for this $50 billion? Increased taxes of course, including a tax on privately held health insurance plans such as the one you probably have.

Now, the S-CHIP program was originally designed to help poverty level children, something I think we can all get behind. But who will be the beneficiary of this increased spending under the new plan? A family of 4, including adults, who make up to $81,000 per year or 400% above poverty level could qualify to be covered under this program. It looks to me more like a gradual spread of socialized medicine rather than helping the truly needy in our country. Ironically enough, under the Democrat's expanded S-CHIP program, 70,000 American families would be "poor enough" to qualify for S-CHIP while at the same time among "the rich" who have to pay the Alternative Minimum Tax (AMT).



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barry US bonds writes: Tuesday, July, 31, 2007 7:37 PM
"could" qualify?
"Could" qualify? A family of four with an income of 81,000 "could" qualify for just about anything imaginable, given the proper circumstances. At least youre honest when making an inflammatory, yet weak argument.
DGB33 writes: Wednesday, August, 01, 2007 10:11 AM
It's actually worse than this
He probably used the term "could" qualify because it is dependent on how the states have their program set up. Here in CA the program qualifies familes up to a little over $60,000 household income I believe.

Something Mr. Campbell did not include in his blog is that the new plan by the Democrats also cuts Medicare services for hospitals, home therapy, and a slew of other services...but I am sure you wont read that in the LA Times!
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About John Campbell

John Campbell is a member of the House Financial Services Committee, and has taken a leadership role in addressing the country's top economic issues. Campbell serves as a member of the Joint Economic Committee, and House Committee on the Budget. He has a Bachelor's Degree in Economics from UCLA and a Master's Degree in Taxation from USC.

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