Senate Likely to Pass Bill on Kids' Health Insurance

"Our U.S. citizen children should be covered first," he said.

"Those kids come from low-income families with parents that work hard and pay taxes just like citizens," countered Senate Finance Committee Chairman Max Baucus (D-Mont.). "And, those kids need checkups and prescriptions just like all other CHIP kids."

Republicans and some conservative analysts also noted that as many as 2 million children with access to private health insurance might switch to the cheaper government-subsidized program, a trend known as "crowd out."

Baucus said the bill aims to minimize that by giving states a new option to subsidize employer-sponsored coverage for low-income children. Those subsidies would help keep private insurance affordable.

An eclectic mix of business interests, consumer groups and medical providers lobbied aggressively for expansion of the program, including the National Governors Association, labor unions, the retiree group AARP, the Blue Cross/Blue Shield Association and the Pharmaceutical Research and Manufacturers of America.

When Congress enacted the $700 billion financial bailout last fall, "we were told you've got to take care of Wall Street if you want to take care of Main Street," said Sister Carol Keehan, president of the Catholic Health Association of the United States. "Well, Main Street can never be safe if their children don't have health care."

Staff writer Perry Bacon Jr. contributed to this report.