Fact Sheet: Congress Has a Number Of Options To Pay For Extending Health Coverage To More Low-Income Children

Publication Date: March 2007

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

Author(s):

Research Area: Health

Keywords: Income diversity; Health insurance; Health care costs; Economic projections

Type: Report

Abstract:

In the House and, most likely, in the Senate as well, SCHIP reauthorization legislation will be subject to “pay-as-you-go” rules, which require that the cost of increases in mandatory programs (such as SCHIP) be fully offset through entitlement reductions and/or revenue increases. Some have argued that the goal of reaching many of the eligible uninsured children should be shelved because the cost cannot be “paid for.” Others have argued that Congress should not try to offset the cost of SCHIP legislation because it is too difficult. (Since legislation without offsets would have to overcome substantial procedural obstacles, such as the need to get 60 votes in the Senate, the latter course could undermine hopes for significant progress in covering more low-income children.) In fact, however, ample offsets exist on both the spending and revenue sides of the budget to cover the costs of SCHIP reauthorization several times over — if there is political will to pursue them. These offsets have strong justification on their merits, and the Senate passed some of them in 2005.