States Scramble to Cover Children's Health as SCHIP Money Runs Low

WASHINGTON - Several states face shortfalls in the State Children's Health Insurance Program this fall, a year after President Bush twice vetoed expansions of the popular program and Congress settled for extending it at existing levels.

SCHIP, created in 1997, covers more than 6 million children in families that earn too much for Medicaid but too little for private insurance. Its temporary funding runs through March.

Last year's fight was among the most bitter of the Bush presidency: Congress twice passed bipartisan expansions, and Bush twice vetoed them as a step toward government-run health care. Democrats made it a centerpiece of their campaigns.

Now states report that rising unemployment is pushing more families onto the rolls just as federal allotments fall short. Some have frozen enrollment; others are weighing waiting lists.

Both presidential candidates have pledged to expand the program. Obama calls it a down payment on universal coverage; McCain emphasizes state flexibility and market-based coverage.

"The irony is that the economy creates the need faster than Washington creates the funding," a state health official said. "The kids don't wait for the appropriations process."

___

Associated Press writers contributed to this report.

RECOMMEND THIS STORY