Corzine to challenge new SCHIP rules

In an unprecedented avowal, Democratic Gov. Jon Corzine declared that New Jersey will not obey federal rules that were imposed on the State Children's Health Insurance Program (SCHIP). These rules have been censured as unjust as these would make it harder to enroll middle-income kids for a popular government-subsidized health insurance program.

Corzine’s declaration comes against the background of a larger debate over the SCHIP funding. President Bush wants a small funding increase in the program so as to reduce the federal role in health care. However, The Senate and the House have passed legislation that would radically increase the funding in the program which serves 6.6 million kids.

The new rules, spelled out in an August 17 letter from the Centers for Medicare and Medicaid Services, essentially prevent state SCHIP programs from enrolling uninsured children from families with household incomes above 250 percent ($51,625 for a family of four) of the federal poverty level.

Marian Wright Edelman, president of the Children’s Defense Fund said, "These new policies put forth by the Bush administration without Congressional approval are unjust, increasing barriers to child health coverage at a time when we need to be breaking down those barriers to cover more uninsured children – not fewer."

Terming the new rules as onerous, Corzine said, "I am deeply concerned about the devastating impact that this misguided policy will have on our efforts to address the growing problem of the uninsured." He added that his state will continue to provide health care to children in families even if their income was up to 350 percent above the poverty level.

Bush officials want to focus on the core mission of the program, which is to focus on families who do not earn enough to buy insurance on their own. According to them, going beyond that level will induce many families to drop private coverage.

These restrictions could face legal challenges, with Corzine categorically stating that he is prepared to file a lawsuit to overturn the new rules.