NEWS RELEASE
CONGRESS OF THE UNITED STATES
U.S. HOUSE OF REPRESENTATIVES

Democrats Call for Immediate Action to
Protect Children’s Health Insurance Coverage

Rep. John D. Dingell joined Reps. John Barrow (D-GA) and Leonard L. Boswell (D-IA) today in introducing legislation that will allow states to maintain healthcare coverage for low-income children during a projected funding shortfall in the State Children’s Health Insurance Program (SCHIP) in fiscal year 2007.

“This is an important measure to address a serious funding shortfall which is unfairly penalizing children's healthcare,” said Boswell.

SCHIP was enacted with broad bipartisan support in 1997 and provides more than 4 million children with health insurance. SCHIP is financed through block grants, which have a funding cap, therefore there is no guarantee that the funding will be adequate to meet the healthcare needs of eligible children. Congress has previously acted to fill funding shortfalls in the program. Most recently, Congress filled a $283 million funding shortfall in the program.

In fiscal year 2007, the demand by States for federal SCHIP funds is projected to be approximately 22 percent greater than the amount of funding allowed under the block grant. At least 17 states expect to face a total shortfall of between $800 and $950 million in federal funding.

The Keep Kids Covered Act provides the funding needed by states to fill the expected shortfalls in FY 2007 and ensure their SCHIP programs remain in operation without disrupting coverage for children. The bill would provide funding equal to the state’s anticipated shortfall for FY 2007, based upon spending data the states submit to the Centers for Medicare and Medicaid Services (CMS).

“Congress should not leave to campaign for the 2006 elections without passing this legislation. To do so would send the wrong message to children and their families as to where they are on Congress’s priority list,” said Dingell, the Ranking Member of the Committee on Energy and Commerce, which has primary jurisdiction over healthcare issues. “I commend Congressmen Barrow and Boswell for taking the lead on this very important matter.”

Recent Census data shows that 1.3 million Americans lost health insurance coverage in the past year and a total of 530,000 more children stand to lose coverage unless Congress acts.

“President Bush has created more uninsured Americans than jobs during the six years of his Administration. The Barrow-Boswell legislation is critical to ensuring more Americans, particularly vulnerable children, do not lose the good healthcare coverage they have today,” said Dingell.

The 17 states that anticipate FY 2007 funding shortfalls under the SCHIP program include: Alaska, Georgia, Illinois, Iowa, Louisiana, Maine, Maryland, Massachusetts, Minnesota, Mississippi, Missouri, Nebraska, New Jersey, North Carolina, North Dakota, Rhode Island, and South Dakota. Wisconsin may also be affected.

- 30 -