SCHIP expansion stalls in Congress

Democratic proposals to significantly expand a health care plan for low-income children have stalled over a dispute on whether to pay for the program with cuts to Medicare.

The disagreement raises the possibility of lawmakers having to pass a temporary funding extension for the State Children”s Health Insurance Program, which expires Sept. 30.

Both houses of Congress last month passed bills to extend the popular 10-year-old SCHIP program.

The House measure calls for lowering payments to many insurance plans participating in the Medicare Advantage program, which provides health care services for rural seniors and minority communities. The cuts would save billions of dollars.

The Senate version calls for no Medicare cuts.

Senate Republicans have shown little desire for a bill that includes Medicare cuts.

“The House bill is more expensive by billions of dollars and contains cuts to Medicare Advantage — both of those items are poison pills for some Senate Republicans,” said Sen. Charles E. Grassley of Iowa.

Many Republicans say linking Medicare cuts to a bill intended to provide care for children is inappropriate.

“This [House] bill pits seniors against kids, which I find to be extremely cynical in a policy-making process,” said Rep. Tom Price, Georgia Republican.

But House Democratic leaders have refused to budge, touting their bill on the grounds it would cover more children.

“I said that when we passed that bill, it would be the children’s hour for the Congress of United States,” House Speaker Nancy Pelosi said.

House Democrats add they have little incentive to compromise because House Republicans have given no indication they would support a Democratic-crafted bill even if it didn’t include Medicare cuts.

“This is a complete red herring for House Republicans to talk about wanting Medicare cuts taken out of the bill,” a House Democratic aide said.

House leaders say they’re determined to send a comprehensive bill to President Bush before funding for the program expires at the end of the month.

“This is just too important of an issue to let it lapse,” the House Democratic aide said.

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