State Children's Health Insurance Program

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The State Children's Health Insurance Program (SCHIP) is jointly financed by the Federal and State governments and is administered by the States. Within broad Federal guidelines, each State determines the design of its program, eligibility groups, benefit packages, payment levels for coverage, and administrative and operating procedures. SCHIP provides a capped amount of funds to States on a matching basis for Federal fiscal years (FY) 1998 through 2007. Federal payments under title XXI to States are based on State expenditures under approved plans effective on or after October 1, 1997.

The program was designed to cover uninsured children in families with incomes that are modest but too high to qualify for Medicaid.

On December 29, 2007, the SCHIP program was extended to cover current enrollment levels through March 2009.

On February 4 2009, President Obama signed the bill to expand the SCHIP program and to revoke the limitations set during President Bush administration.

Reauthorization History in 2007

Created during the Clinton administration, two proposals passed by the Congress in 2007 to reauthorize and expand SCHIP from an average of $5 billion yearly to approximately $12 billion yearly over the next five years were vetoed by President George W. Bush. In September 2007, Congress passed compromise legislation (HR 976) to reauthorize the SCHIP program, which expired on September 30, 2007. The President vetoed this compromise bill on October 3, 2007. The House failed to override the President's veto of this bill on October 18, 2007. HR 3963, a slightly revised version of HR 976, was introduced on the House floor on October 25, 2007. The revised bill would have: (1) set the top income limit to 300 percent of the federal poverty level; (2) clarify and emphasize that illegal immigrants are not eligibility for coverage; and (3) phase-out adult coverage, except for pregnant women, in one year instead of two. This revised bill passed, but President Bush vetoed it on December 12, 2007.

After twice denying attempts to expand its reach, on December 29, 2007, President Bush signed legislation (S 2499) that would extend SCHIP program to cover current enrollment levels. The extension of the State Children's Health Insurance Program (SCHIP) should provide states with funds to cover those enrolled through March 2009.

Reauthorization in 2009

On February 4 2009, President Obama signed the bill to expand the State Children’s Health Insurance Program (SCHIP) and to reauthorize it through 2013.

The bill expands SCHIP eligibility, enabling states to enroll an additional 4 million children, gurantees coverage for dental and mental health care, permits states to provide Medicaid and SCHIP coverage to legal immigrants, and also allows states to cover pregnant women.

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