Martinez Bill Would Weaken Children’s Health Coverage: Bill Would Lead to Cuts in SCHIP While Creating Poorly Designed Tax Credit

Publication Date: November 2007

Publisher: Center on Budget and Policy Priorities (Washington, D.C.)

Author(s): Matthew Broaddus; Judith Solomon; Edwin Park

Research Area: Health

Keywords: Economic projections; Health insurance; Income diversity

Type: Report

Abstract:

In contrast to the bipartisan SCHIP legislation, which the Congressional Budget Office estimates would cover nearly 4 million uninsured children by 2012, the Martinez plan provides less federal funding than states need simply to sustain their existing SCHIP programs.  It also overturns procedures that have governed SCHIP since its inception, under which SCHIP funds allocated to states that do not use them are redistributed to states that can use them to cover uninsured children.  The Martinez plan would instead return to the Treasury all funds not used by states to which they were initially allocated.  This would lead over time to further reductions in SCHIP coverage.