NEWS RELEASE
Committee on Energy and Commerce

Reps. Tauzin, Dingell Introduce
SCHIP Funding Compromise

WASHINGTON (February 5) -- Vowing to improve the health of America's children, House Energy and Commerce Committee Chairman Billy Tauzin (R-LA) and Ranking Member John Dingell (D-MI) today introduced a bipartisan compromise proposal (H.R. 531) to extend the availability of expiring State Childrens’ Health Insurance Program (SCHIP) funds.

“The issue of unspent SCHIP funds has been at a critical crossroads for some time now,” said Chairman Tauzin. “Rep. Dingell and I have worked together to forge a compromise that fairly addresses the funding concerns for this very important and successful health program for children. Without this agreement, funding for the program could be reduced by $2.7 billion. For our children’s sake, we can not allow this to happen.”

“We are facing a double whammy, many families are struggling to keep their health insurance and states are being forced to reduce the assistance they provide. We must seize the opportunity to help both, and protect the health insurance of 900,000 children,” said Ranking Member Dingell.

SCHIP, enacted in 1997, currently provides health care coverage to approximately 4.3 million children. Federal funding for this program is provided through state-specific, annual allotments. Several states were unable to use all of their allotments, while other states spent their entire funds. Absent a statutory change, states with excess funds from prior years would lose millions in funding and put underserved children's health in jeopardy.

The Tauzin-Dingell SCHIP proposal will allow states to continue to use $1.2 billion in funds through FY 2004 that were originally allocated for FY 1998-99. The proposal would also extend for one additional year the availability of $1.5 billion in SCHIP funds from FY 2000 and 2001 allotments, thereby allowing 50 percent of each year’s unspent money to be retained by states that have not used their entire allotment. The remaining 50 percent of unspent money would be distributed to states that have spent all of their respective year’s allotment.

Senators Olympia Snowe (R-ME) and John Rockefeller (D-WV) are expected to introduce a companion bill in the Senate today.

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