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Senate to open PeachCare funding debate
The Atlanta Journal-Constitution - 7/16/2007
Washington The Senate will open debate Tuesday on funding for Georgia's PeachCare program and similar programs nationwide that provide health insurance to poor children, but the fight will be much fiercer and politically divisive than many key players anticipated, according to those involved.
The Senate Finance Committee is schedule to vote on a compromise bill that would provide $60 million over the next 5 years for the States Children's Health Insurance Program or SCHIP, PeachCare's parent program, which runs out of money Sept. 30.
The compromise provides $15 billion less than Democrats wanted and $55 billion more than President Bush sought. Moreover, the bill would get the necessary new funds from a tax increase on cigarettes, from the current 39 cents-a-pack to $1, that most Republicans and some Democrats say they'll resist.
The White House, too, has problems with the proposed compromise, which the Senate Finance Committee is expected to approve. Bush aides said over the weekend they are recommending Bush veto the measure should it pass the Senate and House.
In Georgia, where 270,000 children rely on the program, the outcome of the debate could have serious ramifications. If an agreement can't be reached, PeachCare and programs like it "are gone," said Amanda Seals, spokeswoman for the Department of Community Health. Peachcare is funded by the federal and state governments, but it already ran out of money once this year, in March, and despite a stopgap rescue by state and federal officials, it could run out again.
Gov. Sonny Perdue, who appeared before Congress to urge the reauthorization of the program earlier this year, remains optimistic a deal will get done.
"We will continue to monitor the discussions in Washington closely," said Perdue's spokesman, Bert Brantley. "And are hopeful that a compromise can be reached that will continue to keep Georgia's children covered on PeachCare."
A compromise, however, may be more difficult than Perdue and other governors imagined.
Bush called Democrats' plans to enlarge SCHIP a "massive expansion" of government-run health care and said Democrats' real goal is to create a socialized system of medicine in America.
"Their goal is to take incremental steps down the path to government-run health care for every American," Bush said. "It's the wrong path for our nation."
Bush is hoping to capitalize on the sense of urgency surrounding SCHIP funding to inject into the debate his health care priorities, including tax breaks that would encourage people to buy private insurance rather than rely on government programs like SCHIP.
"SCHIP and the reauthorization debate is a center-court match between the philosophies of government-run health care and organized private health care markets," said Health and Human Services Secretary Mike Leavitt.
But the political gap between the Democratic Senate and Bush on health care is so great that lawmakers and SCHIP advocacy groups fear the president will derail negotiations over the children's insurance program and put 6 million enrolled children back on the rolls of the uninsured. "It is confusing to hear the administration characterize [SCHIP] as a 'massive expansion' of government health insurance, when the current proposal would only insure one-quarter of the 8 million to 9 million uninsured children in America today," said Bruce Lesley, president of First Focus, a SCHIP advocacy group.
Senate Republicans including Georgia Sens. Johnny Isakson and Saxby Chambliss didn't immediately rule out increasing SCHIP funding. But Isakson and Chambliss conditioned their support, saying changes would have to be made, such as using SCHIP money to insure parents and pregnant women and making middle class families eligible for benefits.
"The deal is not done yet," Isakson said. Despite the fierce debate expected to officially kick off today, Isakson said he expects Congress to renew the program with modest changes to ensure that states like Georgia don't run out of money before the end of the budget year.
"Reauthorization [of SCHIP] is important," Isakson said, "and I'm committed to reauthorization."
Isakson and Chambliss expressed support for Bush's goal of giving tax breaks to encourage Americans to buy private insurance. And while they support PeachCare, neither will vote to raise taxes to expand it and similar programs in other states.
"I question what their intention is," Chambliss said of the Democrats. "If their intention is to transform SCHIP into a universal health program, that's not something I'd support."
Georgia Department of Community Health spokeswoman Seals said the department is hoping Congress can act before the program runs out of money on Sept. 30.
"We need this desperately bad," she said.
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