Bush: Democrats Are Risking Kids' Health

President Bush speaks during a news conference, Thursday, Sept. 20, 2007, in the press briefing room at the White House in Washington. (AP Photo/Ron Edmonds) (Ron Edmonds - AP)

"The president hides behind the word 'federalization' because his political base opposes doing what is decent and humane," said Sen. John Kerry, D-Mass. "The Senate and the House both approved legislation that would extend health care coverage for poor kids, not cut it back."

States have flexibility to set eligibility criteria for participants. New York, for example, recently applied to expand coverage to families whose incomes are up to four times the federal poverty level _ $68,680 for a family of three. The administration rejected New York's proposal. A doubling of spending would encourage states to expand eligibility, according to the administration.

Rather than expanding the program "beyond its original purpose, we should return it to its original focus, and that is helping poor children, those who are most in need," Bush said. "And instead of encouraging people to drop private coverage in favor of government plans, we should work to make basic private health insurance affordable and accessible for all Americans."

The House previously had called for a $50 billion expansion that would have been paid for by raising tobacco taxes and lowering subsidies to private insurers offering Medicare health benefits. But the provision to lower the subsidies was opposed by some GOP senators as well as by nearly 20 House Democrats, making it more difficult to overcome a veto.

The $35 billion increase is a compromise, with most, or all, covered by the tobacco tax.

Pelosi said the House will return later this year to address the changes that most Democratic lawmakers supported, including a cut in payments for some insurance plans serving beneficiaries. Those cuts would help pay for additional benefits as well as an increase in the reimbursement rates for physicians who treat Medicare beneficiaries. Those physicians now face a 10 percent pay cut beginning Jan. 1, unless Congress intervenes.

In a letter to fellow Democrats, California Rep. Pete Stark took issue with Pelosi's decision to deal with the Medicare provisions later. He said portions of the House bill "have been abandoned for rhetorical and/or political reasons that are unclear to me."

Stark agreed with Republicans who say a short-term extension will occur before the end of September.

Health and Human Services Secretary Mike Leavitt said most states would have enough money to continue their programs for a while even if the SCHIP expires at the end of this month. However, he said about 12 states may not have enough money to keep going for a sustained period. He did not provide a list of the states.

House Republican leader John Boehner, R-Ohio, said he supported Bush's call for a temporary extension of the program. He described the legislation to be offered by Democrats as flawed and partisan. However, Sen. Charles Grassley, R-Iowa, said a temporary extension leaves many children without health coverage.

"I talked to the president this morning," Grassley said. "I pointed out that his limit of $5 billion over five years isn't enough to accomplish what he said he wants to do, and that's cover more kids."