Bush Ready To Fight Kids Insurance Bill
President Promises To Veto SCHIP Legislation, Democrat Says White House Skews Truth
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Play CBS Video Video Bush Stands Firm
There's a battle between the president and Congress over a health care program for kids. Jim Axelrod reports standing firm may be a message to Congress that he is no lame duck.
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President Bush called the bipartisan proposal to expand a popular medical insurance program for poor children "a step toward federalization of health care." Democrats denounced his opposition. (AP Photo/Pablo Martinez Monsivais)
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Democrats say the president is freezing out struggling Americans ineligible for Medicaid, but who can't afford to buy insurance, reports CBS News chief White House correspondent Jim Axelrod.
So far the Senate has passed a version by a veto-proof majority, but the House has not, and House Speaker Nancy Pelosi, D-Calif, knows the president's veto threat could easily become reality, reports Axelrod.
“The president is saying, 'I forbid 10 million children in America to have healthcare,’” said Pelosi.
The State Children's Health Insurance Program is set to expire Sept. 30. Democrats are pushing for a $35 billion spending increase for SCHIP, but Bush has threatened to veto it. He has proposed a $5 billion increase. Some Democrats believe they can secure a political victory by sending him a bill they know he will veto, he said.
The president urged lawmakers to send him a simple, temporary extension of the current program, which would give lawmakers more time to work out their differences over a long-term renewal.
“If they fail to do so, more than a million children could lose health coverage,” Bush said at a press conference. “Health coverage for these children should not be held hostage while political ads are being made and new polls are being taken.”
But even Republicans, like Iowa’s Sen. Chuck Grassley are calling on the president to compromise, reports Axelrod.
SCHIP is a state-federal partnership designed to provide health coverage to families with incomes too high to qualify for Medicaid, but not high enough to afford private coverage. More than 6 million people, primarily children, participate. The program's future has become this year's most important health policy debate.
Pelosi said said the nation's governors are seeking a more permanent resolution.
“I don't know what the point is of an extension. So that we can have this conversation again and have another extension?” Pelosi said. “The moment of truth is now.”
The proposal that Democratic lawmakers support would bring total spending to about $60 billion over the next five years, or twice the level sought by the Bush administration. Several Republican senators also voted for that spending level when that chamber approved a bill last month. Negotiators are still working behind the scenes on a final proposal, which is expected to come to a vote in the House next week.
Bush said he opposed a $35 billion increase because it would encourage states to extend health coverage to middle-income families now using private insurance.
“I believe this is a step toward federalization of health care,” Bush said.
Democratic lawmakers said their proposal does not call for a government takeover of health care.
“The president hides behind the word 'federalization' because his political base opposes doing what is decent and humane,” said Sen. John Kerry, D-Mass. “The Senate and the House both approved legislation that would extend health care coverage for poor kids, not cut it back.”
States have flexibility to set eligibility criteria for participants. New York, for example, recently applied to expand coverage to families whose incomes are up to four times the federal poverty level - $68,680 for a family of three. However, the administration rejected New York's proposal. A doubling of SCHIP spending would encourage states to expand eligibility, the administration says.
“Instead of expanding SCHIP beyond its original purpose, we should return it to its original focus, and that is helping poor children, those who are most in need,” Bush said. “And instead of encouraging people to drop private coverage in favor of government plans, we should work to make basic private health insurance affordable and accessible for all Americans.”
The House previously had called for a $50 billion expansion of SCHIP that would have been funded by an increase in tobacco taxes and lowering subsidies to private insurers offering Medicare health benefits. But the provision to lower the subsidies was opposed by some key Senate Republicans as well as by nearly 20 Democrats in the House, making it more difficult to overcome a veto.
The $35 billion increase is a compromise crafted by a handful of lawmakers from each chamber. Most, or all, would be funded by the tobacco tax.
Pelosi said the House will return later this year to address the changes that most Democratic lawmakers supported, including a cut in payments for some insurance plans serving beneficiaries. Those cuts would help pay for an increase in the reimbursement rates for physicians who treat Medicare beneficiaries. Those physicians now face a 10 percent pay cut beginning Jan. 1, unless Congress intervenes.
Health and Human Services Secretary Mike Leavitt said most states would have enough money to continue their programs for a while even if SCHIP expires at the end of this month. However, he said about 12 states may not have enough money to keep going for a sustained period. He did not provide a list of the states.
House Republican leader John Boehner, R-Ohio, said he supported Bush's call for a temporary extension of the program. He described the legislation to be offered by Democrats as flawed and partisan. However, Grassley said an extension leaves many children without health coverage.
“I talked to the president this morning,” Grassley said. “I pointed out that his limit of $5 billion over five years isn't enough to accomplish what he said he wants to do, and that's cover more kids.”
And the president may have another incentive to play tough, says Axelrod. It lets Democrats know that if they're thinking he's a "lame duck" -- he's still here slugging.
© MMVII, CBS Interactive Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.
Michelle Obama tells how her role as the First Lady has changed her perspective.





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See all 45 CommentsThe next President will be a Democrat.
Chose wisely. Chose Richardson.
Cool down, dude. It''s your logic which is flawed. Why should the ***sources*** of funding be directly children-related ?
"(...)from 2 sources:
(1) increasing the tobacco taxes and
(2) lowering subsidies to private Medicare insurers."
Exactly. And I say that if (1) is not enough, (2) should be used to compensate for it.
"The second source of funds was dropped because of opposition by key Senate Republicans and 20 House Democrats."
It shouldn''t be dropped. But it doesn''t mean that (1) shouldn''t be used. If you read my posts and others carefully, you''ll see that the concern was that people would stop smoking, tobacco taxes would go down and wouldn''t be enough to found SCHIP. Doesn''t mean that they cannot be used in that case but some other funding is needed.
"Sadly those who opposed the second source (because they feel they must protect their campaign contributors interests instead of the children of this nation) can%u2019t read and comprehend any better than you."
I agree with you on the first part of the sentence.
"Those lower subsidies were proposed to correct the current $15 billion in OVERPAYMENTS to those private insurers. The opposing politicians would rather let the insurance companies keep $15 billion our tax dollars."
Exactly. As I said, I don''t see why private companies should receive subsidies.
"The President is spending about $6 billion a month on the war in Iraq so over the next 5 years (length of time covered by SCHIP funding) his war will cost over $360 billion and yet providing healthcare to a few more of America%u2019s poor CHILDREN would only $35 billion (less than 10% of future cost of war)."
I agree.
Well then, we could say that we would be in the same mess if things had turned out differently in 2004. Or maybe we could say that we no longer have any qualified people running for the presidency?
Or maybe we could say that money can buy you a president if he is of C calibre. We could extrapolate many scenerios, couldn''t we? But, it is odd that bush seems to get such a kick out of telling the story, as though he feels a need to put down people of more superior intellegence than he.
Did anyone else hear him tell the story the other day about him telling Rice that she may be the PHD but, he is the C student sitting in the White House. Of course , we have trouble believing he was even a C student.
SignOf4 - Loyal Republican (Nazi) Party Member
Defender of the : Master - Slave Mentality
True - I don''t pay health care any more -
I use the VA - Resulting from several gunshot and shrapnel wounds
Same to you - Nazi Loser -
SignOf4 - Criminal Corporate (Nazi) America
Loyal Republican (Nazi) Party Member
Lastdance
Posted by lastdance2 at 12:42 PM : Sep 21, 2007
What a blithering little crybaby commie! Ever hear of a kid dying because they didn''t have insurance? NO!
You know, you aren''t limited to the amount of federal tax you pay. If your CPA says you owe $10,000.00, you can send the gov $15K. Feel free.
But you''re probably one of those who pay NOTHING yet still get a refund. Loser.
You need to increase your reading comprehension skills in a MAJOR way!! Even Dubya understands that SCHIP is for CHILDREN (and I personally don%u2019t know any children who smoke tobacco). What the article says is that when the plan was to expand the program by $50 billion that the money was to come from 2 sources:
(1) increasing the tobacco taxes and
(2) lowering subsidies to private Medicare insurers.
The second source of funds was dropped because of opposition by key Senate Republicans and 20 House Democrats. Thus the expansion is now planned to be $35 billion.
Sadly those who opposed the second source (because they feel they must protect their campaign contributors interests instead of the children of this nation) can%u2019t read and comprehend any better than you.
Those lower subsidies were proposed to correct the current $15 billion in OVERPAYMENTS to those private insurers. The opposing politicians would rather let the insurance companies keep $15 billion our tax dollars.
The President is spending about $6 billion a month on the war in Iraq so over the next 5 years (length of time covered by SCHIP funding) his war will cost over $360 billion and yet providing healthcare to a few more of America%u2019s poor CHILDREN would only $35 billion (less than 10% of future cost of war).
The Uncle of Pres. Bush
Prescott Bush
Born Aug. 10, 1922.
Chairman, U.S.-China Chamber of Commerce;
Chicago, where the U.S.-China Chamber of Commerce has its headquarters. Bush said : I don''t get a lot of business because my nephew is president or my brother was president."
His connections to an American firm, Asset Management, came into question in 1989, when the company was the only U.S. firm able to skirt U.S. sanctions and import communications satellites into China.
Last year, he opened the U.S.-China Chamber of Commerce offices in Chicago. The membership roster includes United Airlines, American Express, cDonald''s,
Ford and Arthur Andersen, the beleaguered company that audited Enron''s books.
Any member of the - Bush Family - Who enjoys - $9.00 a month - Slave Labor - Who also Allows Lead painted Toys to be shipped to the US. For the Children of US parents.
His nephew Pres. Bush - Cannot be expected to give any American child a Decent Insurance Bill.
It is simply a matter of Family - Pride -
To Study Hitler - is to - Predict Bush
To understand the German Nazi Party is
To Understand The Republican (Nazi) Party
Lastdance
What about Bush''s Medicare prescription drug "reform"? It cost far more than the measly $35 billion for SCHIP. It was a HUGE step towards "federalization of healthcare". Somehow, THAT was OK by little Georgie. But healthcare for 10 million children in our country is not!
Bush is a con man, a liar, a murdering scvmbag. He is beneath contempt. Perhaps he read "Suffer the little children oome unto me" in his Bible and thought, "I should make the children SUFFER so I can be like my hero, Jesus!"
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Posted by abbe91 at 10:44 AM : Sep 21, 2007
We should do the same here as well! Alcohol is just as bad as smoking!
They maybe so, but the point still is the amount of taxes that would be missed, is staggering.
Also I live in NC too, the buyout did affect alot of people, but, Tobacco still is grown here. Just not as many, the ones that are growing it, can plant many more acres of it. Used to be only 40 acres, as you probably know .
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