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Children's Health Insurance Program (SCHIP) 

Debate over extending the State Children's Health Insurance Program (SCHIP) centers on who will be eligible if the program is extended for another five years. President Bush and other republicans are willing to expand coverage to include children whose parents are earning up to $62,000 (for a family of four) but they also want other restrictions to prevent the program from being abused.

Currently, about 36 states have rules which allow them to ignore certain types of income when determining a families' eligibility for the program. Child support payments, for example, are often excluded. Bush and others want to limit the states' ability to do this. Additionally, any adults who are covered by the plan at this point will be removed from the program within one year.

Another bone of contention is how much to expand the SCHIP budget. Bush has gone on record as recommending only $5 billion while the legislature has called for an increase of $35 billion. Representatives for the president do believe he would approve a bill for a larger amount of funding but not $35 billion. The administration is also against paying for the increased budget by raising the tax on cigarettes.

 

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