U.S. Senator Susan Collins has joined with Sen. Jack Reed (D-RI) in sending a letter to the leadership of the Senate Finance Committee requesting a fully funding an extension of the State Children’s Health Insurance Program (SCHIP) in the event of Congress being unable to agree on a veto-proof SCHIP reauthorization.
At present, the current law that funds the SCHIP program expires on November 16th.
A Full Text of the Letter Follows:
Dear Senators Baucus and Grassley:
We applaud your efforts to reach a compromise to reauthorize the State Children’s Health Insurance Program (SCHIP). If a reauthorization bill is not enacted by November 16, when the current continuing resolution expires, health care coverage for children across the nation will be at serious risk.
Under a simple extension of the current continuing resolution, $5 billion would be available for allotments for all of FY2008. According to a recent report by the Congressional Research Service, this would not be enough to cover projected spending in 21 states. The shortfalls would total $1.6 billion, and nine states would face a shortfall as early as March of next year. The Congressional Budget Office estimates that compared with full funding, this would result in a decline in enrollment of 1.6 million.
While Congress has typically acted to cover shortfalls, these 11th hour stopgap measures are not sustainable. States need to be able to plan ahead and rely on a predictable federal funding stream.
Facing the prospect of shortfalls, a number of states are already developing contingency plans that would cut, cap, or limit coverage. Congress must act before it is too late.
As Senators representing shortfall states, we strongly support your efforts to craft a bipartisan, bicameral reauthorization bill. In the meantime, we strongly urge you to fully fund an extension of SCHIP to preserve coverage for thousands of children.