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 Category: All > State IssuesSCHIP GuidelinesMay 22, 2007
COMPONENT #1: FUNDING FOR SCHIP SHOULD BE REDEPLOYED TO MORE EFFECTIVELY EXPAND COVERAGE TO CHILDREN WHO ARE MOST IN NEED AND GIVE THEM ACCESS TO PRIVATE HEALTH INSURANCE.
In order to accomplish this objective, we believe Congress should be guided by the following principles:
A MORE COMPREHENSIVE APPROACH TO HEALTH COVERAGE: While we believe that limits should be established to make sure that SCHIP conforms to its original intent of covering lower-income children, we fundamentally disagree with having a federal program that separates the health care of children from that of their parents. Children should be covered on their parents' policies, and lawmakers should work to expand coverage of families. Therefore, we support the following policy proposals that would expand coverage to children and their families: COMPONENT # 2: TAX POLICY GOVERNING THE PROVISION OF HEALTH INSURANCE SHOULD BE FAIR AND EQUITABLE. The Congress should provide equally favorable tax treatment of private health insurance for all American families, regardless of where they get their coverage.* COMPONENT #3: EXPAND PRIVATE SECTOR COVERAGE FOR LOWER-INCOME WORKING FAMILIES THROUGH DIRECT ASSISTANCE, INCLUDING VOUCHERS OR REFUNDABLE HEALTH CARE TAX CREDITS FOR THE PURCHASE OF HEALTH INSURANCE. For many low-income families, simply establishing more equitable tax treatment of health insurance would not be enough to help them afford coverage. Therefore, we recommend additional low-income assistance, such as supplemental refundable tax credits or vouchers provided by the federal government or the states. Refundable credits are especially valuable for lower-income families who do not owe taxes and who need additional financial assistance in order to purchase private health insurance, and credits or vouchers offer an important alternative to further expanding government-run health care programs. Since refundable credits will be scored by the Joint Tax Committee as a spending increase, it is important that the source of funding for these credits come from spending reductions, not income tax increases. COMPONENT # 4: ESTABLISH GREATER FLEXIBILITY IN THE USE OF SCHIP AND MEDICAID FUNDING. Those who are eligible for assistance through SCHIP should be able to receive the benefit in the form of a subsidy for buying private coverage for their children or adding their children to their job-based policies. The same subsidies should be available to people in similar circumstances, regardless of whether or not they previously had purchased health insurance. Similarly, states should be given much more flexibility in how their Medicaid dollars are spent, including offering defined contributions. This would give states greater freedom to match resources with the needs of their citizens. Congress and the states could advance Medicaid and SCHIP flexibility as follows:
First, states should be encouraged to gear subsidies to a beneficiary's income and possibly health risk. They also should be able to establish other features, such as cost sharing, to prepare families to transition to private coverage.In summary, we recommend a combination of more equitable tax treatment for all health insurance purchasers, additional assistance for lower-income people, and state flexibility to turn SCHIP and Medicaid benefits into defined contributions. Redeploying these funding sources, coupled with contributions from individuals and families, would facilitate the integration of children with their parents' health insurance coverage, would allow families to have the security of health insurance, and would dramatically expand access to health coverage for American families.
*For more information, please see "Reforming the Tax Treatment of Employment-Based Health Insurance," a statement of the Health Policy Consensus Group presented to the President's Advisory Panel on Federal Tax Reform in 2005, and Empowering Health Care Consumers through Tax Reform, University of Michigan Press, 1999. Both available at www.galen.org.
Click here for the pdf. This fact sheet was jointly prepared by health policy experts from the Galen Institute, The Heritage Foundation, the American Enterprise Institute, and numerous other public policy organizations. For more information, please contact Consensus Group signatories:
Grace-Marie Turner
Nina Owcharenko
Joseph R. Antos, Ph.D.
Robert E. Moffit, Ph.D.
Doug Badger
Robert B. Helms, Ph.D.
Gail Wilensky, Ph.D.
Joel C. White
James C. Capretta
Roy Ramthun
Stephen Entin
Ryan L. Ellis
John Goodman, Ph.D.
James Frogue
Merrill Matthews, Ph.D.
Sally Pipes
Ed Haislmaier
Brad Hallman
David Gratzer, M.D.
Paul Howard
Benjamin Zycher, Ph.D.
John E. Calfee, Ph.D.
Eli Lehrer
Robert Goldberg, Ph.D.
Peter Pitts
Leslie Paige
Elizabeth Wright
Edmund J. McMahon
Naomi Lopez Bauman
Linda Gorman
Kerri Houston
Jack Strayer
Brian Williams
John R. Graham
Peter McMenamin, Ph.D.
Paul Guppy
Christie Raniszewski Herrera CommentsAdd Comment |
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