After President Bush’s expected veto of the proposed expansion of the State Children’s Health Insurance Program (SCHIP), Congress should not engage in a protracted political contest with the White House. Rather, the proper response would be to propose a compromise that attracts broad bipartisan support. Such a compromise would aim to expand coverage for uninsured children while helping to preserve existing coverage for modest-income families who are struggling to make ends meet. The best way to achieve this goal would be to combine a reauthorized SCHIP program with a tax credit for children in families just above the basic eligibility level. ...

The current debate has focused almost exclusively on SCHIP — as though expanding SCHIP is the only way to expand health coverage for children. ... Specifically, a reasonable compromise could be formed around three simple concepts:

1. Reauthorize SCHIP for eligible children. ... The legislation should include provisions to increase outreach to enroll eligible children who do not have private health insurance coverage. ...

2. Enact a child health care tax credit. For families with incomes between 200 percent and 300 percent of the federal poverty level (the core population targeted by supporters of the SCHIP expansion), Congress should provide assistance to help them purchase private health insurance or retain the private coverage they currently have. ...

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3. Adopt a “federalism” health care initiative. ... Already enjoying broad support in both parties, this element would provide states with even stronger incentives and flexibility to find more efficient ways of using existing federal and state funds to increase insurance coverage. ...

Read more at: www.heritage.org.