Congressman Johnson Proposes Shortfall Fix for PeachCare

Press Release

Date: March 13, 2007
Location: Washington, DC

CONGRESSMAN JOHNSON PROPOSES SHORTFALL FIX FOR PEACHCARE

U.S. Congressman Hank Johnson (D-GA) today proposed a stand-alone fix to resolve the funding shortfall that threatens the State Children's Health Insurance Program (S-CHIP) which includes Georgia's PeachCare. Georgia is one of several states experiencing a funding shortfall in Fiscal Year 2007 and the state has announced that it will not accept any new enrollees into the PeachCare program as a result.

"It is imperative that Congress provide the funding necessary to protect America's children," said Johnson. "We can pass this legislation on its own merit to ensure that needy children have access to the health benefits they require."

Rep. Johnson faults the S-CHIP funding formula which penalizes states such as Georgia while other states enjoy surpluses. His proposal, H.R. 1487, would redistribute FY 2005 and 2006 S-CHIP funds from states that have an excess to cover the estimated $745 million shortfall among the 14 states which are in crisis. Currently, any excess S-CHIP funds must be returned to the federal treasury.

Under Johnson's plan, Georgia would receive the estimated $131 million it needs to avert the children's healthcare crisis.

Johnson's plan is a companion to the stand-alone bill, H.J. Res. 20, introduced by Senators Saxby Chambliss (R-GA) and Johnny Isakson (R-GA) last month. The bill authorizes the appropriation of temporary funding so that the federal government can continue to operate until the complete appropriations acts are passed. Like Chambliss and Isakson, Johnson proposes to reduce funding to states that cover adults under the S-CHIP program. "Children's health must be our priority," said Johnson.

In recent weeks, Johnson has met with Georgia's Governor, the Georgia General Assembly, and he has addressed the PeachCare crisis almost daily on the floor of the House urging bipartisan support for America's children.

"I applaud Gov. Perdue and the Georgia Legislature for their efforts in responding to the PeachCare crisis," said Johnson. "Now it is imperative that Congress act accordingly."


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