SCHIP eligibility limits to take effect

Washington -- An attempt to nullify new eligibility restrictions on the State Children's Health Insurance Program failed in July despite support from a bipartisan group of 49 senators.

On Aug. 17, the Bush administration plans to begin requiring states that want to enroll more people at or higher than 250% of the federal poverty level to prove they already have enrolled 95% of SCHIP-eligible people earning 200% or less of the poverty line. Also, employer-sponsored coverage of families earning 200% or less of the poverty line must not have declined by more than two percentage points in the previous five years.

Centers for Medicare & Medicaid Services officials have said the directive is designed to ensure that SCHIP covers lower-income children first and to discourage families with private insurance from dropping their children's coverage in favor of SCHIP. Opponents say the policy could make it more difficult to enroll children in SCHIP in general. The American Medical Association has asked the Bush administration to rescind the directive.

Sen. John D. Rockefeller (D, W.Va.) introduced a resolution July 17 to nullify the CMS policy and sought to give the measure privileged status, meaning it would be considered more quickly than regular legislation. The Congressional Review Act allows Congress to use this tactic to nullify federal agencies' rules. The Rockefeller resolution had 49 co-sponsors, including eight Republicans and two independents.

But the Rockefeller resolution missed a deadline imposed by Senate rules and, therefore, could not get privileged status, according to an opinion issued July 22 by the Senate parliamentarian, who interprets the body's rules and procedures.

Lawmakers could consider the resolution using the regular legislative process, but that takes longer. Congress, which was scheduled to begin its annual summer recess Aug. 8, was unlikely to have time to adopt legislation preventing the directive from taking effect Aug. 17, said Rockefeller spokesman Steven Broderick.

Max Baucus (D, Mont.), chair of the Senate Finance Committee, said he would continue to look for ways to stop the directive.

"There's more than one way to skin a cat, and I fully intend to work with Sen. Rockefeller and with the dozens of senators who support SCHIP for kids to get rid of this wrong-headed rule."