Making the grade on meritorious SCHIP

America’s kids may be out of school for summer, but the Senate will take a big test this month. The task of renewing the State Children’s Health Insurance Program (SCHIP) will measure our commitment to the health of low-income, uninsured kids across our country. And families in need are counting on us to pass this test with flying colors.

Since its bipartisan creation in 1997, SCHIP has provided health coverage to millions of children whose parents cannot afford private insurance, but who do not qualify for Medicaid. Ten years later, it’s time to renew SCHIP’s funding before the program expires on Sept. 30. Congress must seize the opportunity to build on this triumph of cooperation and collaboration in health policy.

The Senate Finance Committee started right last week by approving a bipartisan agreement to help kids in need. The $35 billion package approved by a vote of 17-4 will keep 6.6 million SCHIP-covered kids covered, and can reach 3.2 million more low-income, uninsured children with dependable health coverage over the next five years. It sharpens SCHIP’s focus on children’s coverage. It even provides a boost to the dental and mental health coverage so vital to children’s well-being.

There are many reasons why SCHIP is the right place to make this investment.

SCHIP helps children in need

First and foremost, SCHIP is helping the kids it’s supposed to help. SCHIP kids aren’t rich kids — they’re kids in need. Nine out of 10 children covered by SCHIP live in families with incomes at or below twice the federal poverty level — about $34,000 for a family of three. Nearly seven out of 10 SCHIP-covered children live in families with annual incomes at 150 percent of the poverty level or less. Since SCHIP came along, the number of uninsured low-income kids in this country has dropped by one-third. And in seeking to include additional children in SCHIP, the Finance Committee’s legislation targets the lowest-income kids for outreach and enrollment.

SCHIP is affordable for low-income families

SCHIP is fulfilling the promise of an affordable alternative for parents who can’t swing the cost of private insurance.
Recent reports claiming that 25 to 50 percent of SCHIP-covered kids could have private coverage ignore the fact that while parents living near poverty may be offered employer-sponsored health care, they can’t always afford the premiums set for their families or even for themselves. Every public health program covers some Americans who might have private insurance, but SCHIP is the only realistic option for many parents to cover their children for healthcare.

And as it reaches families in need, SCHIP is setting a new example for healthcare policy, combining the best of public and private solutions.

SCHIP combines public and private healthcare solutions

Smart leaders agree that the best approach to getting more Americans covered for healthcare is a mix of public and private efforts. SCHIP has led the way. The program is publicly funded, and must meet minimum federal standards, but four out of five states have some private market component for their program. Not unlike the Medicare drug benefit, those state programs are modeled on private market benchmarks, with benefits administered through private plans. 

SCHIP is a good deal for America

SCHIP has also managed to serve millions of children without breaking the bank. It’s a block grant program, not an entitlement. So Congress has complete control over the amount allotted to SCHIP, and states have to learn to live within their limits. Some have fallen short of funds in recent years, but Congress knows enough after 10 years to set the right level of funding for the next authorization period.

Renewing SCHIP will help American children in need

The Finance Committee followed six key principles in renewing SCHIP. We provided enough money to maintain coverage for those children SCHIP already serves. We have worked to reach more of the uninsured children who are eligible for SCHIP or Medicaid but not enrolled. We supported state efforts to cover more children with SCHIP, and sought to improve the quality of healthcare under the program And while we are phasing down SCHIP support for adults, we are providing meaningful options for states to continue to provide coverage through other means.

Washington is a lot more partisan than it was 10 years ago. It’s clear that the president and others see renewal of SCHIP as a chance to advance an ideology instead of standing up for kids. Those who see this program as a political opportunity, rather than an opportunity to help children, need to take their agendas someplace else.

It’s time to work together again, and put America’s kids first. It’s time for Congress to make the grade with a robust renewal of the State Children’s Health Insurance Program.

Baucus is chairman of the Senate Finance Committee.

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Washington or patients can win on SCHIP — it’s up to us