MCCONNELL’SPROPOSEDSCHIPLEGISLATIONWOULDREDUCEBENEFITSANDINCREASECOST-SHARINGFORSCHIP-ELIGIBLECHILDRENWITHACCESSTOEMPLOYER-BASEDCOVERAGEfromhttp://www.cbpp.org/10-10-07health.htm(athanksforthesourcegoestoBrianNamey)

SenatorMitchMcConnell,theSenateMinorityLeader,planstoaskforreconsiderationoftheSCHIPlegislationthatheandSenateMinorityWhipTrentLottofferedasanalternativeduringSenatefloordebateonSCHIPonAugust1. TheMcConnell-Lottproposalwasdefeatedatthattimeona61-35vote.

Undercurrentlaw,stateshavetheoptiontosubsidizeprivateinsuranceforSCHIP-eligiblechildrenwhosefamilieshaveaccesstoemployer-sponsoredhealthinsurance,ifdoingsowouldbecost-effectiveandthechildrenhaveaccesstothesamebenefitsanddonotincurhighercost-sharingcharges. ThebipartisanSCHIPbillpassedbytheHouseandSenateincludesadditionalprovisionstomakeiteasierforstatestoadoptthis“premiumassistance”option. 

TheMcConnelllegislation,however,wouldmodifycurrentlawandlikelymakesomechildrennowonSCHIPworseoff.

·      Stateswouldnolongerberequiredtoprovidesupplemental“wrap-around”coverageiftheemployerplandoesnotprovidebenefitsequaltothoseundertheSCHIPplanand/oriftheemployerplanimposeshigherco-paymentsthanarechargedundertheSCHIPplan.

·      Stateswouldexplicitlybegiventheoptiontosubsidizehigh-deductiblehealthinsuranceplansattachedtoHealthSavingsAccountsofferedbyemployers,eventhoughlow-incomefamilieswhosechildrenareeligibleforSCHIPareunlikelytobeabletoaffordhighdeductiblesof$2,200ormorebeforetheirchildrenreceiveanybenefits.

·      Statescouldmake“premiumassistance”mandatory,evenifSCHIP-eligiblechildrenendedupreceivingfewerbenefitsandfacinghigherco-paymentsthantheywouldiftheyreceivedSCHIPcoveragedirectly.