Statements on Introduced Bills and Joint Resolutions
STATEMENT ON INTRODUCED BILLS AND JOINT RESOLUTIONS -- (Senate - September 28, 2006)
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By Mr. GRASSLEY (for himself, Mr. ISAKSON, Mr. CHAMBLISS, Mr. BURR, and Ms. MURKOWSKI):
S. 3972. A bill to amend title XXI of the Social Security Act to reduce funding shortfalls for the State Children's Health Insurance Program (SCHIP) for fiscal year 2007; to the Committee on Finance.
Mr. GRASSLEY. Mr. President, I am pleased to introduce the ``Fiscal Accountability, Integrity and Responsibility in SCHIP'' or FAIR-SCHIP Act. I am pleased to be joined in this effort by Senator JOHNNY ISAKSON, R-GA, Senator SAXBY CHAMBLESS, R-GA, SENATOR RICHARD BURR, R-NC and Senator LISA MURKOWSKI, R-AK. This legislation is a targeted one year approach to addressing a looming problem in the State Children's Health Insurance Program (SCHIP).
According to estimates prepared by the Congressional Research Service, as many as 17 States will run out of SCHIP funds in 2007. Several States will run shortfalls in the hundreds of millions of dollars. These shortfalls will result in States having to limit the coverage available to low-income children. These shortfalls are deep and they will get deeper.
One of my principal objectives in the 110th Congress will be to reauthorize the SCHIP program. There are a number of compelling issues associated with the SCHIP program that will require thoughtful review and discussion by Members of Congress.
Reauthorization will not be easy. Legislating on an issue as complex and sensitive as children's health care is never easy. However, if the Congress does not act to address some of these policies as well as the SCHIP formula, one thing is certain: The current State entitlement is not sufficient, in the long term, to cover the costs of maintaining the current level of coverage provided by the States.
I am aware of legislation introduced in the Senate and the House that would simply appropriate additional funds to cover the SCHIP shortfalls. This is not a viable option.
If the Congress perpetuates a scenario where the SCHIP funding formula is not improved and other programmatic changes are not enacted, yet State SCHIP shortfalls covered year after year, there will be no practical difference between SCHIP, which is a capped allotment, and Medicaid, which is an open ended entitlement.
I do not believe there is majority support for turning the SCHIP program into an entitlement program. I am concerned what going down a path that essentially does treat SCHIP as a de facto entitlement program means for the long standing viability of SCHIP. Therefore, the approach envisioned in FAIR-SCHIP takes a balanced, moderate approach to addressing this issue.
FAIR-SCHIP recognizes that additional resources will be needed if States are to be able to continue to provide the current level of coverage for children.
FAIR-SCHIP also recognizes that funding under the SCHIP programs can be more equitably distributed.
FAIR-SCHIP takes a moderate, balanced approach by appropriating approximately half of the estimated Fiscal Year 07 shortfall.
FAIR-SCHIP also includes a modest redistribution scenario that would occur in the second half of the fiscal year and only affect the 05 allotments of States which have a 200 percent surplus of SCHIP funds, relative to their projected 07 spending.
FAIR-SCHIP is a fiscally sound, responsible approach to the issue of SCHIP shortfalls that will position the Congress to achieve important programmatic improvements in the 110th Congress, when the SCHIP program will need to be reauthorized.
I ask unanimous consent that the text of the bill be printed in the RECORD.
I hope my colleagues will support the approach envisioned by FAIR-SCHIP.
There being no objection, the text of the bill was ordered to be printed in the Record, as follows:
S. 3972
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