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The FACTS about CHIP! Nancy Pelosi's FACT CHECK
REALITY: Research Shows 6 Million Children, Not 500,000, Are Eligible for Public Coverage But Are Not Enrolled. Much of the widely-accepted research on the number of uninsured children eligible for public coverage was conducted by the REALITY: The Bi-Partisan CHIP Bill is Designed to Target the Same Kids the President Says He Wants to Cover. The measure ensures that states must cover their lowest-income kids first by phasing in a new requirement for coverage of low-income children as a condition of receiving CHIP funding for coverage of children above 300 percent of the poverty level. After October 1, 2010, federal matching payments are not permitted to States that cover children whose family incomes exceed 300 percent of poverty, if the State does not meet a target for the percentage of children at or below 200 percent of poverty enrolled in CHIP. The target rate would be the average rate of insurance coverage (public and private) among the highest-ranking 10 States. In reality, CHIP focuses virtually all of its resources on children in the poorest working families, fewer than 1 in 10 kids covered under CHIP lives in a family of four earning more than $41,000 a year. In addition, our bill further prioritizes children by phasing non-pregnant adults out of the program. By vetoing the bipartisan bill, the President is continuing his policy of covering non-pregnant adults with CHIP money. [HR 976, 2007] REALITY: Senator Orrin Hatch Argued 92 Percent of Kids Covered by the Bipartisan CHIP Bill Would Be Under 200 Percent of the Federal Poverty Level. “And for those who argue that it’s out of control, 92 percent -- no less than 91 percent, but really 92 percent of all the kids who will be covered by this bill will be in families under 200 percent of the poverty level.” [Press Conference, 10/3/07] President Bush: “It is estimated by -- well, here’s the thing, just so you know, this program expands coverage --- federal coverage -- up to families earning $83,000 a year. That doesn't sound poor to me. The intent of the program was to focus on poorer children, not adults or families earning up to $83,000 a year.” REALITY: No State Currently Covers Children at $83,000 and The CHIP Reauthorization Agreement Does Not Raise the Eligibility Level To Encourage States to Cover Families up to $83,000. The legislation targets funding to low-income children and actually reduces federal support for future coverage of children at higher income levels. There is nothing in the agreement that changes current law rules on interpretation and approval of appropriate income levels for eligibility above 200 percent of the federal poverty level (or 50 percent above a state’s Medicaid income cap) – this decision remains one that the HHS Secretary makes, just as in the original CHIP law written by a Republican-led Congress. [HR 976, 2007] President Bush: “I believe in private medicine. I believe in helping poor people, which was the intent of SCHIP -- now being expanded beyond its initial intent. I also believe that the federal government should make it easier for people to afford private insurance.” REALITY: The Bi-Partisan CHIP Compromise Combines the Best of Public and Private Approaches to Provide Health Coverage to Children. The Children’s Health Insurance Program is not an entitlement program, rather, a capped block grant program for states. The program affords states great flexibility to offer coverage as they choose. The great majority of CHIP programs are modeled after private insurance and use private plans to deliver benefits. CHIP’s structure in most states is similar to the Medicare prescription drug benefit, in which federal benchmarks and funds guide a program administered largely through private insurers. [HR 976, 2007; Center for Budget and Policy Priorities, 6/12/07]
The Bipartisan Children’s Health Insurance Program Reauthorization Act CHIPRA does not “expand” the CHIP program – it limits the program eligibility more than current law. CHIPRA is focused on enrolling eligible low-income children. Fully 84% of children who will enroll in CHIP after the reauthorization is passed are currently eligible but not enrolled in CHIP. Approximately 70% of the children who will be enrolled will come from families making less than 200% of the federal poverty level, and 45% of the newly enrolled children will come from the poorest segment of society, those in families with incomes under the poverty level (approximately $20,000 for a family of four).
REALITY: The Bi-Partisan CHIP Bill is Designed to Target the Same Kids the President Says He Wants to Cover. The measure ensures that states must cover their lowest-income kids first by phasing in a new requirement for coverage of low-income children as a condition of receiving CHIP funding for coverage of children above 300 percent of the poverty level. After October 1, 2010, federal matching payments are not permitted to States that cover children whose family incomes exceed 300 percent of poverty, if the State does not meet a target for the percentage of children at or below 200 percent of poverty enrolled in CHIP. The target rate would be the average rate of insurance coverage (public and private) among the highest-ranking 10 States. In reality, CHIP focuses virtually all of its resources on children in the poorest working families, fewer than 1 in 10 kids covered under CHIP lives in a family of four earning more than $41,000 a year. In addition, our bill further prioritizes children by phasing non-pregnant adults out of the program. By vetoing the bipartisan bill, the President is continuing his policy of covering non-pregnant adults with CHIP money. [HR 976, 2007] Facts are Facts: The Bipartisan Children’s Health Insurance Program Reauthorization Act The bipartisan Children’s Health Insurance Program Reauthorization Act (CHIPRA) provides $35 billion in additional funding for CHIP and Medicaid for the five years, FY 2008-2012. The bill pays for the extension of the SCHIP program through an increase in the federal tax on tobacco products. A pack of cigarettes will be taxed an extra $0.61. CHIPRA does not “expand” the CHIP program – it limits the program eligibility more than current law. Currently, any state may apply to the federal government for a waiver to increase its CHIP income eligibility limit to any level it wishes. Until this year, the Bush Administration has approved every waiver to do so. CHIPRA would limit states’ ability to enroll children in families with incomes above 300% of the federal poverty level (approximately $60,000 for a family of four), with two exceptions, which are grandfathered in. CHIPRA is focused on enrolling eligible low-income children. Fully 84% of children who will enroll in CHIP after the reauthorization is passed are currently eligible but not enrolled in CHIP. Approximately 70% of the children who will be enrolled will come from families making less than 200% of the federal poverty level, and 45% of the newly enrolled children will come from the poorest segment of society, those in families with incomes under the poverty level (approximately $20,000 for a family of four). CHIPRA severely limits eligibility for adults. The bill bans states from enrolling childless adults in CHIP. It would shift all childless adults off the program in the next few years. The bill would not allow the federal government to accept new waivers to enroll parents of eligible children. States already enrolling parents would be allowed to continue, at a reduced federal match. Pregnant women would be allowed to enroll in CHIP at state option. CHIP is not government-run health care. Fully 77% of CHIP enrollees are covered in private managed care health plans. CHIP provides private health care to people who cannot afford to purchase it themselves, but it charges premiums and co-pays. “Crowd out” of private coverage is limited in CHIPRA. The Congressional Budget Office (CBO) estimates that one-third of children who will enroll in CHIP through funds provided by CHIPRA will have previously been covered by privately-financed insurance. While that sounds like a high number, the CBO director has noted that crowd out is inevitable in any attempt to cover uninsured children. He has said that he has “not seen another plan that adds [as many] kids to SCHIP with a 33 percent crowd-out rate. This is pretty much as good as it is going to get.” CHIPRA does not provide coverage to illegal immigrants. The bill reiterates current federal law which prohibits coverage to illegal immigrants. The bill does amend current citizenship documentation requirements, which have been shown to create a barrier to health-care coverage for |
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