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Title : Schip Reauthorization In Addition To High Stakes Politics

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Schip Reauthorization In Addition To High Stakes Politics

Everyone agrees that the State Children’s Health Insurance Program (SCHIP) needs to locomote reauthorized.

But Washington couldn’t bring made such a elementary sentiment whatever to a greater extent than complicated or controversial.

So far:

• The Senate has come upwardly to a bipartisan agreement, supported past times lots of Republicans, that would growth spending past times $35 billion, add together some other iii meg kids to the 6 meg already covered, pay for it alongside a 61 cent tobacco tax, too streamline the computer program to a greater extent than along its master lines.
• The House is struggling to approve a much larger $60 billion expansion too pay for it alongside both a tobacco tax too cuts to somebody Medicare plans that would equalize them alongside traditional Medicare over a iii twelvemonth phase-in showtime inwards 2009. The House nib also deals alongside other wellness attention issues similar the upcoming physician fee cuts.
  
• President Bush has said both proposals locomote besides far toward creating government-run wellness care too he has promised to veto both.
• Republicans are working alongside Democrats inwards the Senate inwards an endeavour to bring the votes to override a presidential veto. They mightiness bring the votes inwards the Senate and are less probable to bring the needed two-thirds inwards the House.
  

The Congress is laid to locomote out town at the terminate of this calendar week too non come upwardly dorsum until subsequently Labor Day.

Where is this going to come upwardly out?

First, SCHIP volition locomote reauthorized. Most likely, Bush and the Congress, led past times Republican Senators who include Grassley too Hatch, volition locomote out a bargain past times the terminate of September that volition probable expand the electrical flow SCHIP computer program inwards the $15 - $20 billion gain too pay for it alongside a smaller tobacco tax—and non Medicare Advantage cuts.

The House nib is but an practise that goes means beyond anything that is possible inwards the Senate.

Failing that, the computer program volition locomote continued at introduce levels using a “continuing resolution.” No 1 volition allow it decease when it sunsets on September 30th. In this scenario, SCHIP would larn punted to the year-end omnibus reconciliation that the Democrats will bring far to a greater extent than command over.

The Congress is ready to cutting somebody Medicare payments. Congress needs the Medicare Advantage money to forbid the upcoming 10% physician fee cuts.

The House SCHIP bill is valuable inwards that it shows the wellness conception manufacture the worst representative scenario for somebody Medicare cuts—no sooner than 2009 too a three-year phase-out of payments inwards a higher house traditional Medicare.

But nosotros won’t larn to the physician fee cuts too private Medicare payments until the year-end omnibus budget nib where the Democratic commission chairmen volition bring full command of the Congressional budget process.

The most probable termination is that the Senate will elbow grease a less dramatic cutting to Medicare Advantage than the House wants—looks to me similar a iv to v twelvemonth phase-out alongside the possibility that Private Fee For Service rates inwards urban areas would locomote frozen—all starting no sooner than 2009.

To brand things fifty-fifty to a greater extent than interesting, Bush has also threatened to veto most all the Democratic spending bills.

Just how far President Bush is willing to motion into this budget showdown alongside the Congress will locomote evident inwards how the SCHIP negotiations betwixt the White House and Republican Senators plough out. If they can’t larn a SCHIP deal done, nosotros volition locomote headed toward a big budget showdown betwixt the President too the Congress. That is something that Republicans are actually worried about—they bring to human face upwardly reelection fifty-fifty if Bush doesn’t.

If cooler heads prevail nosotros volition bring lots of compromises that volition include the necessary Medicare Advantage cuts to pay for other provider needs—particularly the docs.

If cooler heads don’t prevail, nosotros volition bring 1 hell of a budget mess.

SCHIP volition enjoin us if Bush is inwards the mood to bargain or not.

Earlier Post on the Senate SCHIP compromise: Bush Reaffirms Veto Threat Over SCHIP Despite Strong Republican Support for Bipartisan Compromise—What’s Really Going On Here?

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