Earlier this year, the Bush administration sought to prevent the expansion of the State Children’s Health Insurance Program (SCHIP). The president twice vetoed versions of the bill that would have expanded the program amid concerns that parents who could afford private insurance would seek coverage under SCHIP, depriving low-income children of coverage.
Unable to override a presidential veto, Democrats decided to not pursue efforts to renew and expand SCHIP. With a Democrat in the White House and larger majority in Congress, the tide has turned. Last week, Speaker of the House Nancy Pelosi said that the Democrat-majority Congress would seek to pass measures blocked by the Bush administration, including the expansion of SCHIP and using taxpayers’ money to fund embryonic stem cell research. (Congress Daily)
The new Congress will decide whether to attach legislation to renew and expand SCHIP to a larger bill or draft a separate bill.
Incidentally, the Government Accountability Office recently studied the issue and concluded the administration violated federal law when it prevented states from expanding SCHIP, because it did not follow the rule-making process.