By Fred Tuccillo, Managing Editor
PLAINSBORO—The prime sponsor of a bill expanding the State Children’s Health Insurance Program (SCHIP) told a forum here Friday that the measure was “a down payment” on Obama Administration programs aimed at extending “affordable health care” in the U.S.
Rep. Frank Pallone (D-6) addressed a gathering of 60 persons at the AARP New Jersey’s Princeton Forrestal headquarters as well as several hundred others who dialed into the “tele-town hall” event.
Mr. Pallone, who chairs the health subcommittee of the House Energy and Commerce Committee, said the bill passed by Congress on Wednesday and expected to be signed into law by President-elect Barack Obama after he is sworn into office on Tuesday, would protect existing coverage for the 7 million children currently in the SCHIP program and extend it to an additional 4 million.
The program provides federal funding that enables participating states to offer health insurance to children up to age 19 who are not otherwise insured. The coverage includes doctor visits, immunizations, hospitalizations and emergency room visits. Eligibility rules differ from state to state and Rep. Pallone acknowledged Friday that New Jersey, which is among the states that have sought to broaden eligibility, have been the “poster child” for those opposing expansion of SCHIP, including outgoing President George W. Bush, who twice vetoed it. As cost has been a key concern of Congressional opponents, Mr. Pallone and his host, AARP-NJ president Sy Larson, stressed that the expansion approved Wednesday is to be paid for with an increase in the federal excise tax on tobacco products. The tax hike, which would translate into a 61-cent per pack increase for cigarette smokers, was called a “win-win” by Rep. Pallone, because he said it would provide an incentive for people to quit smoking and avoid the attendant health risks. Mr. Larson called it “truly a fiscally-responsible way” to expand health care.
In response to a question from forum moderator Douglas Johnston, the AARP-NJ’s governmental affairs manager, Mr. Pallone said that passage of his bill did make him optimistic about the prospect for further health care reform under President Obama but cautioned against any expectation of national “single-payer” health insurance. “I’m an advocate for a single-payer system but we’re not going to get it,” Mr. Pallone said, explaining that it is “not politically viable.” He added that even the more modest three-pronged approach expected from the Obama administration will be difficult to accomplish during the current economic downturn.
The Obama program, as sketched out by Rep. Pallone, would seek to:
• improve provider reimbursement rates and reduce the copays in existing federal health coverage;
• extend tax credits to employers who continue to provide health care benefits to their employees;
• create a national insurance pool for those still in need of coverage, with federally-subsidized premiums charged on a sliding scale, according to income.
The congressman acknowledged that the cost of accomplishing all three steps is likely to be “several hundred billion dollars” with previous cost estimates for the national insurance pool alone accounting for about $120 billion.

