States' flexibility still SCHIP sticking point

WASHINGTON — President Bush and other critics of a $35 billion spending increase for children's health insurance say they'll support expanding coverage to families of four making as much as $62,000 a year, but they want to limit states' ability to go beyond that level.

About three dozen states ignore certain income when determining who can get government-subsidized health coverage. For example, many states exclude child support payments. Others deduct expenses for child care when determining who qualifies for the State Children's Health Insurance Program.

Congress is considering the renewal of SCHIP for an additional five years, but differences remain over whom the program should cover and how much money should be spent. The flexibility that states have in defining income is one of the differences that will probably need to be resolved for Democrats to override a promised veto from Bush.

The health program covers families who earn too much to qualify for Medicaid but not enough to afford private insurance. States determine eligibility, with most states covering children with incomes at twice the federal poverty level — $41,300 for a family of four. About 18 states cover children above that threshold or have plans to do so.

At the White House on Monday, spokeswoman Dana Perino said President Bush's negotiators have been meeting with Republican congressional leaders — but not Democrats — about the children's health insurance legislation.

"I think they offered, and I don't think the meeting was accepted," Perino said of the White House's overture to leaders of the Democratic majority. Asked if any meetings with Democrats were planned, she said: "I don't think they want to meet with us. I think that's the point. They haven't taken us up on the offer."

House Speaker Nancy Pelosi, D-Calif., said that Democratic lawmakers will be glad to talk to Bush and have tried to do so.

"Anytime the president wants to sit down, and we have invited him over and over again in a bipartisan way, sit down and talk about covering 10 million children, then we are pleased to have that conversation with him," Pelosi said at an event in Miami.

So far, the issue of "income disregards" has received little attention, but that started to change in last week's debate on the House floor.