Leavitt, Hatch in standoff over children's health insurance

WASHINGTON — Two powerful Utahns in Washington are in a standoff over a $35 billion expansion of the Children's Health Insurance Program.

Sen. Orrin Hatch helped push the expansion through a Senate committee Thursday, over the objections of former Utah governor Michael Leavitt, now secretary of Health and Human Services.

The measure faces a veto threat from the White House.

The Senate Finance Committee approved a 61¢ increase in the federal tax on cigarettes and other tobacco products to help fund the expansion, which would add 3.2 million children to CHIP rolls over the next five years and continue services to 6.6 million currently being served.

Leavitt told Senate leaders Tuesday that the Bush administration strongly opposes the legislation.

Hatch, R-Utah, said facing a veto threat from the White House and opposition from Leavitt did not make him comfortable but he was confident the final bill was an appropriate compromise that focused on needed child health care.

"This is a good bill," Hatch said. "It accomplishes what we have set out to do — to take care of the children. Yes, I wish it did not cost what it does, but I am persuaded this is necessary spending when I think of the 6 million American children who are leading healthier lives because of our vision and commitment."

The program provides health coverage for low-income, uninsured children whose parents cannot qualify for Medicaid. Hatch helped create the program in 1997.

The Senate Finance Committee approved the bill 17 to 4. It is not clear when it will move to the Senate floor for a vote. The program expires on Sept. 30, so the bill would need to be signed into law before then if those getting coverage now are to continue.

Senate Majority Leader Harry Reid, D-Nev., said Thursday that President Bush should "drop his irresponsible veto threat" and that senators who oppose the bill should not block a vote on it.

Meanwhile, the Partnership for Quality Care, which strongly supports the bill, is hoping Rep. Chris Cannon , R-Utah, follows Hatch's lead and can take a leadership role in the House when it takes up its version of the bill.

The organization, made up of labor unions and hospitals, started an $80,000 ad campaign in Cannon's district urging residents to call their representative to support the bill.

PQC spokeswoman Kate Navarro-McKay said the ad is a positive one, meant to encourage Cannon's leadership on the issue. Because Utah has such strong support for children and families, Utah is the logical leader, she said.

But Cannon does not like the idea of tying insurance to the tobacco tax, nor does he like the government getting deeper into the health care business by expanding the program, said spokesman Fred Piccolo.