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Health Senate leaders said Wednesday that if they cannot agree with Republicans to pass a stand-alone stop-gap spending bill for the State Children's Health Insurance Program soon, they will attach the bill to an Iraq supplemental spending bill the Senate will take up in late March or early April. Fourteen states are expected to face SCHIP shortfalls totaling about $745 million this year. A Senate leadership aide said the Iraq supplemental is considered a "last resort" for getting the needed SCHIP money to the states. Some states, including New Jersey, will face SCHIP shortfalls within the next several weeks. In a conference call, Finance Chairman Baucus assured those states that Congress would grant interim funding to get them through the year while lawmakers hammer out a longer-term SCHIP reauthorization. "We hear your concerns," he said. "We'll get on it." Baucus said SCHIP funding and reauthorization is the top priority in the Finance Committee. The committee will mark up a bill in May, and Baucus is expected to have at least some bipartisan support during the process. During reauthorization, Baucus said he wants to expand SCHIP to cover all children who are eligible. Only about half of the children who are currently eligible to receive the state/federal health benefit are enrolled. Analysts estimate it would cost $60 billion over five years to cover everyone eligible for benefits. The administration, however, has asked for only a $5 billion increase in the program, which most lawmakers say is inadequate. The Congressional Research Service estimates it would take at least $12 billion in new funding just to continue covering current beneficiaries. New Jersey Democratic Gov. Jon Corzine, who was also on the conference call, said his state is being forced to decide between funding education for children and health care. "That really is not the trade-off that I think was intended," he said. New Jersey will need an extra $119 million in SCHIP funds before summer. Corzine said Bush's SCHIP budget proposal demonstrates the administration's "misplaced priorities." "This administration has not done its part, and states have been struggling with the consequences," Corzine said. Earlier this month, Senate Majority Leader Reid and House Speaker Pelosi sent a letter to President Bush asking for a separate emergency supplemental spending request for SCHIP. Bush has not responded to the request. Sens. Saxby Chambliss, R-Ga., and Johnny Isakson, R-Ga., have introduced a bill to redistribute FY05 and FY06 funds from states that have an excess of more than 200 percent in federal SCHIP funds to cover the 14 shortfall states this year. Georgia would receive $131 million in SCHIP funds under the bill. The bill also includes language that would give less money to states that use SCHIP funds to cover adults of uninsured children. Most Democrats support state efforts to cover uninsured adults with SCHIP, but the administration and several Republicans have argued that the program should be targeted only at children. By Fawn Johnson, with Peter Cohn contributing
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