Cornyn Backs Bill To Increase Program Funds For Low Income Children

Sen. Cornyn announces support for bill that increases funding for low-income children through the State Children’s Health Insurance Program (SCHIP).

WASHINGTON, D.C., Jan. 27, 2009 -— U.S. Sen. John Cornyn, R-Texas, today co-sponsored Kids First, a bill that expands funding and services made available for low-income children through the State Children’s Health Insurance Program (SCHIP), while protecting Texas taxpayers.

If passed, the bill would significantly increases funding available for Texas children, limits the ability of other states to expand eligibility, and provides funding for outreach and enrollment efforts.

The legislation also establishes a new allotment formula based on state projected expenditures, actual expenditures and the number of uninsured low-income children in the state. Importantly, Texas will receive sufficient allotments to cover expenditure projections provided by HHSC. In the event that spending or enrollment increases, the formula provides a buffer to make sure there are sufficient funds for the program.

“SCHIP is a critical program that provides health care coverage and preventative services to low-income children who are unable to obtain care on their own. Since its inception, SCHIP has been extremely important to Texas children, and I strongly support expanding this program. Kids First would considerably increase the funding currently available to Texas, commit $400 million to enrolling eligible children, and target low-income children. There are millions who are eligible nationwide but are not yet enrolled in SCHIP and Medicaid. Here in Texas, there are an estimated 850,000 kids who fall under that category, and this legislation makes enrolling and covering low-income children its utmost priority,” Sen. Cornyn said.

“In trying economic times, it’s important we accomplish this goal without placing the burden on taxpayers. Kids First protects taxpayer dollars and pays for the expansion by reducing administrative costs, duplicative spending and eliminating earmarks.

“Conversely, the Democrats’ bill shifts the focus away from low-income children who need it the most. Under their proposal, families with incomes up to $100,000 a year, parents, and childless adults would receive billions of taxpayer dollars. It’s unconscionable that the Democrats want to expand the program beyond its original intent and enroll upper middle-class families before states have enrolled children from families below 200 percent of the federal poverty level. Equally troubling, their legislation raises taxes on low-income families, uses a budgetary gimmick to mask the true cost of the bill, and provides earmarks for New York and New Jersey.

“We must continue to improve access to health care. I support expanding SCHIP, and the Kids First bill I’m co-sponsoring will accomplish that goal in a fiscally responsible manner and protect low-income children. I hope my colleagues will agree and make the right choice to cover low-income children first.”

Specifically, the Kids First bill:
* Provides allotments to Texas over the next five years at levels beyond projected spending, as provided by HHSC. The annual excess allotment as well as previously unused funds still available to Texas provides a buffer in case actual spending exceeds HHSC projections.

* Protects Texas taxpayers by using a reliable funding source, not raising taxes, and by preventing states from liberally expanding their SCHIP and Medicaid programs to families with higher incomes, parents, and childless adults, who are all beyond the original intent of the program.

* Provides $400 million over 5 years for outreach and enrollment, and requires the Secretary to develop a National Enrollment Campaign.

* Gives states increased premium assistance options to families in order to seek coverage for their children in the private market.

* Reduces administrative costs and waste as well as earmarks.