PLAN FOR COVERING THE UNINSURED BANKS ON FEDERAL DOLLARS

A broad-based coalition of healthcare groups today unveiled a proposal for covering the nation's 47 million uninsured, largely through increased government funding. The two-phased proposal, which is being shopped around to lawmakers, would aim its first effort at 9 million uninsured children. It would expand the State Children's Health Insurance Program to all eligible children and provide tax credits for families below 300 percent of the poverty line to cover their children through private insurance. The first phase would cost about $45 billion over five years, according to Families USA President Ron Pollack, a coalition member. The coalition did not agree how the proposal would be paid for, other than that it should be funded by the federal government. "This is part of their responsibility, from our point of view," said Federation of American Hospitals President Charles Kahn, another coalition member. The coalition consulted with state organizations — the National Governors Association, the National Association of Counties and the National Conference of State Legislatures — but it did not seek administration or congressional advice. Pollack said the state organizations were adamant about opposing any new healthcare authorizations not backed up with federal funding. The coalition plans to use upcoming SCHIP reauthorization, which lawmakers want to pass by May, as a vehicle for its "Kids First" proposal. The $45 billion needed to pay for the children's piece would be on top of the $10 billion to $15 billion lawmakers estimate will be needed to keep the SCHIP program functioning without expansion.

The second phase of the coalition's plan, for which there is no timetable or cost estimate, would give states' flexibility to expand Medicaid to cover adults with incomes below the federal poverty level. For adults with incomes between 100 percent and 300 percent of the poverty level, tax credits would help them cover themselves through private insurance. Coalition members sidestepped funding questions in a Congress governed by tight budgets and pay/go rules. "The cost of not doing anything is even more dramatic," said United Health Foundation Senior Vice President Reed Tucker, adding that the group "has the political muscle" to advocate its position. "We are committed, through our presence here today, that all of us are sticking together," he added.

The coalition includes organizations from across the political spectrum, including the U.S. Chamber of Commerce, America's Health Insurance Plans, the American Medical Association, the American Hospital Association, Catholic Health Association, AARP, and the United Health Foundation. Several healthcare providers such as Blue Cross Blue Shield, Kaiser Permanente and Pfizer also are members. Staffers for lawmakers who will be involved in the issue could not comment at presstime. House Energy and Commerce Health Subcommittee Chairman Frank Pallone, D-N.J., said last week his priority was expanding SCHIP to all who are eligible.

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By Fawn Johnson