Bush Veto Foreseen On Child Health Bill

(AP)  The Bush administration said that senior advisers would recommend the president veto Senate legislation that would substantially increase funds for children's health insurance.

The legislation calls for a 61-cent increase in the federal excise tax on a pack of cigarettes. The revenue would be used to subsidize health insurance for children and some adults with incomes too high to qualify for Medicaid — the government health insurance program for the poor — but not enough to afford insurance on their own.

Members of the Senate Finance Committee brokered a bipartisan agreement Friday that would add $35 billion to the program over the next five years. The Bush administration had instead recommend $5 billion.

Sen. Max Baucus of Montana, the committee's chairman, said the proposal would lead to more than 3 million uninsured children obtaining health coverage. But others said that estimate is high because they believe some families that would sign up for the program would have already been getting their coverage through the private sector.

The Senate legislation expands the State Children's Health Insurance Program beyond the original intent of the program, White House Spokesman Tony Fratto said Saturday.

"It's clear that it will have the effect of encouraging many to drop private coverage — purchased either through their employer or with their own resources — to go on the government-subsidized program," Fratto said. "Tax increases are neither necessary nor advisable to appropriately fund SCHIP."

Congress is considering renewing the program before it expires Sept. 30. When Congress approved the program in 1997, it provided $40 billion over 10 years. States use the money, along with their own dollars, to subsidize the cost of health insurance. The federal government covers about 70 percent of the cost.

"Congress needs to deliver a bill the president can sign or they need to send him an extension so that people don't worry about losing their current coverage," Fratto said. "It's important that Congress understands the serious consequences of delaying this or sending the president legislation that he clearly cannot sign."

Fratto also called on the Senate Finance Committee to consider the president's recommendation to tax employees on the health insurance premiums paid by their employers. The president would offset the increased taxes by giving taxpayers a deduction or credit. The result would be a tax cut for most families, but not for those with the highest-priced insurance plans. The Bush administration says such changes could make insurance more affordable for many families.

Republican Sens. Charles Grassley of Iowa and Orrin Hatch of Utah had called on the president Thursday to step back from veto threats of legislation that had not been finalized yet.

[jjreding-2009]

Bush insists on his tax breaks but refuses children's health insurance???????????????? Anybody else see anything wrong with this picture?

[sjc_1]

Bob Dole opposed National Health Insurance in 1993 because he wanted to protect the Health Insurance Industry gravy train. They skim 20% off the top for pushing paper and denying claims.

Dole said that health care was 10% of the economy and you should not mess with it. Well NOW it is 12% of the economy and you have to FIX it before it bankrupts the nation and everyone in it!

[sharpiefan]

Another tax on cigarettes is fine, even though it is probably not a good solution. But to tax those that already have good health insurance, how crazy is that. Lets go out and make it more difficult for those that already have something that we desperatley need everyone to have. All it does is cause employers to water down the benefits that they offer today. It is already difficult for a business to provide good benefits, now we want to make it impossible? I was pretty sure Bush was lkow on brainpower, but now I'm convinved. I'm sure the President and his cronies would not be affected in any way.

[uceslady]

Why has everything connected to kids? (Hospitalization, cigarette smoke, breastfeeding, free breakfast, free lunch, free daycare, etc.) Better be concerned about the breadwinner in the family not the dependents. The family pays the bill, works out a payment plan or files bankruptcy if there is no hospitalization insurance. A percentage of the premiums covers bad accounts. They are going to take care of themselves. Just another way for Uncle Sam to belly up to the insurance companies. You scratch my back and I'll scratch yours...isn't that the way our government works.

[timetrips1]

Typical Bush response. Don't raise taxes, unless it's taxes on the poor. Why on earth does he think it OK to add a tax on EMPLOYEES health benifits. It's already close for most folks on whether or not to buy health insurnace, for those lucky enough to have employer provided/subsidized benifits. Now we'll add a tax the employee must pay on what the employer is providing, which means less people can actually afford the health care, meaning more people without health care. Who does that benifit, why the employers of course, less people they actually have to provide benifits to.

Has this president done anything for anyone who isn't already rich and doesn't really need the help. With what has been wasted on IRAQ we could have funded a national health system for the next 100 years (and still cut taxes!)

[snoopy28173]

Why am I not suprised Bush would veto a bill that would raise a tax to help children who don't qualify for Medicaid because their parents make too much money, but can't afford insurrance because the cost of insurranece is too high? If I were in his shoes, I'd pass the bill in a heartbeat. Maybe the next president will pass it; but that will be too late for some.

[jimfinster]

A veto will be another nail in the coffin for the Republican Party.

[condumism]

GOP will pay dearly for this attitude in November, 2008. Not only are these fascists the party of Corporate America special interests, but they are enshrined as the party of Southern Whites that hate the USA as much as their great, great grand daddy['s whom we had to slaughter to death to end their hate for America in the US Civil War (although killing these America hater's obviously didn't do a bit of good.)

[vietnam69-70]

It's very simple:

Bush is dedicated to protecting cigarette companies rather than the health of children.

Truly shameful.

[sjc_1]

"Tax increases are neither necessary nor advisable to appropriately fund [the State Children's Health Insurance Program]."

You really have to parse the words from the people.
"appropriately fund" to them may not mean the same thing as what it means to us.

This is the disconnect between the so called administration and the American people. The vast majority of the people want things to be done and these guys say no, because they know better. In this case, they are in the pockets of bloated profit skimming health care.