Insurance Information

Insurance Bill for Children Passed by U.S. Senate

Rift Created by Immigrant Clause

Legislation designed to provide health insurance to 11 million low-income children, was overwhelmingly approved by the Senate yesterday. This bill represents the first of its kind that includes expenditures that apply to children and pregnant women who are also legal immigrants.
The bill is entitled the State Children's Health Insurance Program, and is geared toward families that are earning too much money to qualify them for Medicaid but still not enough to enable them to afford private insurance. This group currently represents almost 7 million youngsters. The price tag on it is $25 billion.

Voting was pretty much along party lines with lawmakers voting 66 to 32, allowing for renew of the joint state-federal program and for the additional expenditure of $32.8 billion to increase coverage to include 4 million additional children. The plan for financing this expansion is through the raising of the cigarette tax to $1 a pack from 39 cents a pack.

On January 14th, the House had approved similar legislation, and as early as next week, President Obama is expected to sign a final version of the newer bill.

Obama pledged that coverage would be provided to every American child, during his presidential campaign. According to the experts an estimated 5 million youngsters will remain uninsured once the program is fully implemented as early as next week.

In a statement made this morning, President Obama praised the Senate's action citing the difficult financial times with the worsening economy causing families to lose their jobs along with their health insurance. He stated that he sees the Children's Health Insurance Program as a method for providing health care to more than ten million children serving as he sees it, as a down payment on his commitment to make sure that every American has access to quality, healthcare that is both available and affordable.

Taking note of the fact that President George W. Bush twice vetoed similar legislation, Democratic lawmakers praised the vote as evidence of the changing Washington times.

Senator Max Baucus from Montana, who is the Senate Finance Committee chairman, says that this legislation represents what low-income, uninsured kids from allover across America have been waiting to see from Congress as its fulfillment for them of the promise of the Children's Health Insurance Program. He describes the program as working to make available to low-income, uninsured kids the doctor's visits and medicines that they need to stay healthy. He describes the bill graphically as opening the doctor's office door to millions of children who today are living without proper health care.

Still this political victory may have its cost. Although being a program that at one time received strong bipartisan support, according to some moderate Republicans, at this time debate was intense raising doubts about whether later this year, the two parties will be able to unite to pass broader health reform.

Senator Judd Greeg, Republican from New Hampshire points out that this bill represents a good opportunity to demonstrate bipartisanship and agreement with president's language and aims.