SCHIP program extended, physician Medicare rate cuts delayed

Yesterday the House temporarily extended the State Children's Health Insurance Program (SCHIP). (Source: "Dems End the Year Without Health Victory," Associated Press, Dec. 19, 2007.) The extension, which the Senate approved on Tuesday, would fund SCHIP at current levels through March 2009. The Democratic leadership and many Republicans had been fighting for a $35 billion SCHIP expansion, but President Bush vetoed two previous expansion bills, saying they would move too many children from "private coverage to government-sponsored coverage." Despite the temporary extension, Congressional Democrats "promised that the (SCHIP) issue will be revisited many times next year."

The same health bill also gave physicians a 0.5% rate increase when they treat the elderly and disabled in Medicare. Physicians had been scheduled to take a 10% cut. The reprieve for doctors will last until June 30 and cost about $6 billion. "Lawmakers offset the expense in several ways, trimming a fund for certain private insurers by $1.5 billion, reducing payments to physicians for medications delivered at the doctor's office, and freezing payments for inpatient rehabilitation care."