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Trenton, NJ --- U.S. Rep. Frank Pallone, Jr. (D-NJ) joined New Jersey Governor Jon Corzine (D-NJ) and health care advocates at a news conference today to tout legislation he has introduced blocking a directive from the Bush administration that restricts the ability of states to cover uninsured children through the State Children's Health Insurance Program (SCHIP), known in New Jersey as FamilyCare.
The New Jersey congressman, who is the Chairman of the House Energy and Commerce Subcommittee on Health, also announced that his subcommittee would hold a hearing on the legislation Thursday morning in Washington, DC.
The Protecting Children's Health Coverage Act of 2008 comes in response to a questionable August 17th directive from the Centers for Medicare and Medicaid Services (CMS) outlining several stringent guidelines for states like New Jersey that provide SCHIP eligibility to children in families with annual incomes above $44,000.
The administration's directive requires states to assure that 95 percent of the children in the state whose families earn below $35,200 are enrolled in the program before reaching out to children above that level. Currently, no state meets this rigid guideline. The directive also prevents states from enrolling for one year any eligible children who lose their private health insurance.
Pallone's legislation invalidates CMS' August 17th directive, preventing CMS from applying any of the provisions included in the directive when it reviews state plans. The legislation also requires CMS to review within 30 days the original proposals from states whose plans were either rejected or amended based on the directive.
"At a time when the number of uninsured children is steadily rising due to the economic recession, Congress must overturn the Bush administration's mean-spirited and illegal children's health directive," Pallone said. "Our legislation ensures New Jersey can meet the health care needs of thousands of uninsured children who are left behind under this directive."
New Jersey's FamilyCare Program currently covers more than 11,000 children that come from families with annual incomes above $44,000. If the administration's directive is not blocked, it is expected that 84 percent of the children in this income range would lose their coverage through FamilyCare within the next two years.
Last year, the Bush administration used the August 17th directive to reject a New York plan that would have increased the SCHIP eligibility level to provide coverage for an additional 50,000 currently uninsured children. CMS also forced Louisiana to amend its plan to meet the August 17th directive. By August of 2008, New Jersey and 22 states that have or have sought to improve health coverage for children will be affected by the directive.
Both the Government Accountability Office (GAO) and the Congressional Research Service (CRS) have issued legal opinions concluding that the directive violates the Congressional Review Act (CRA), which requires an administration to keep Congress informed about the rulemaking activities of federal agencies and to allow Congressional review of rules.
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