New Jersey Court Hears Arguments Over Legality Of Bush Administration SCHIP Directive Limiting Enrollment

Main Category: Medicare / Medicaid / SCHIP
Also Included In: Litigation / Medical Malpractice
Article Date: 02 Oct 2008 - 7:00 PDT

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A U.S. District Court in New Jersey on Monday heard arguments on the legality of a Bush administration policy directive that restricts states' abilities to expand SCHIP, the Newark Star-Ledger reports (Schwaneberg, Newark Star-Ledger, 9/30). According to guidelines issued by CMS in August 2007, before expanding SCHIP eligibility to children in families with incomes greater than 250% of the federal poverty level, states first must demonstrate they have enrolled at least 95% of eligible children with family incomes below 200% of the poverty level (Kaiser Daily Health Policy Report, 7/18). New Jersey has filed a federal lawsuit asking that the rules be revoked.

Suzanne Esterman, a spokesperson for the state Department of Human Services, said as many as 10,000 children could be removed from the roles of Family Care, the state's version of SCHIP, if the directive is adopted. Jean Lin, an attorney with the U.S. Department of Justice, said the letter provided only "policy guidance" to states receiving federal SCHIP funding. However, state Deputy Attorney General Megan Lewis said the letter created new rules that states must adhere to or else risk losing federal money. She said the rules are unlawful because they were adopted without giving states and other parties involved a chance to comment on them.

Judge Joel Pisano said the case was "complex" but did not issue a decision.

Sen. Frank Lautenberg (D-N.J.) is sponsoring a bill that would block implementation of the rules. Scott Mulhauser, Lautenberg's senior adviser, said, "Senator Lautenberg believes expanding successful programs like [SCHIP] that insures tens of thousands of children in New Jersey and across the country is a critical step in our effort to increase access to affordable, quality health care." Seven other states have sued to have the directive overturned (Newark Star-Ledger, 9/30).

Reprinted with kind permission from http://www.kaisernetwork.org. You can view the entire Kaiser Daily Health Policy Report, search the archives, or sign up for email delivery at http://www.kaisernetwork.org/dailyreports/healthpolicy. The Kaiser Daily Health Policy Report is published for kaisernetwork.org, a free service of The Henry J. Kaiser Family Foundation.

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