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September 28, 2007

SCHIP Expansion Becomes Major Issue in Future of Health Care for Children

On Thursday, September 27, the Senate passed legislation (S. 976), which would expand the $5 billion-a-year State Children's Health Insurance Program (SCHIP) by an average of $7 billion per year over the next five years and allow states to expand coverage to families with higher income levels. Since the House passed a simlar bill (H.R.3162 ) on August 1, this week's development sets up a showdown between the Democratic-led Congress and the White House. Citing concerns that expanding SCHIP would crowd out private health insurers of children and cost too much, the White House has threatened to veto the bill. The Whilte House proposes an alternative that would provide tax deductions to individuals who purchase private health insurance. A recent updated paper from the Kaiser Family Foundation points out that expanding eligibility levels, outreach and eligibility simplification in combination with adequate state financing are key ingredients to expanding coverage.

Appropriations Lapses into Past Pattern of Continuing Resolutions and Omnibus Bills

Despite earlier hopes that the FY 2008 appropriations process would run on schedule, Congress has passed none of the 12 must-pass bills that provide federal funds for FY 2008. With the end of FY 2007 just days away, this week, the House and Senate approved a Continuing Resolution (H.J. Res 52) to temporarily extend funding for federal departments and agencies until November 16, 2007. With few legislative days left on this session's calendar, Congress is likely to wrap most of its appropriations bills in a package "omnibus" appropriations bill. Click here to view the status of all 12 FY 2008 Appropriations bills and links to other budget and appropriations measures.

Modernizing Unemployment Insurance

Much has changed in the 70 years since the Unemployment Insurance (UI) program was established in 1936 said the Brookings Institution's Jeffrey R. Kling, Senior Fellow and Deputy Director, Economic Studies during his September 19 testimony before the House Subcommittee on Income Security and Family Support (a Ways and Means Subcommittee). In the21st century economy, the situation has changed in at least three key ways: 1) more permanent job loss with large wage losses, 2) longer unemployment durations, and 3) greater ability to borrow. Kling suggests shifting resources towards larger, longer-term consequences of unemployment should be the top priority of efforts to modernize the UI system.

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