Gov. Richardson Urges Pearce to Vote for SCHIP Override

Today Gov. Bill Richardson sent a letter to Rep. Steve Pearce (NM-02) urging him to vote to override Bush's veto and reauthorize the State Children's Health Insurance Program (SCHIP). He noted the bipartisan nature of the legislation. SCHIP now covers 8,700 children in New Mexico and an additional 11,000 get some SCHIP funding. Pearce, who has announced he'll run for the U.S. Senate in New Mexico, is the only member of the state's Congressional delegation to vote against the reauthorization of SCHIP.

In a statement, Gov. Richardson said, "Reauthorizing the children's health care program is vital for assuring the health of tens of thousands of low-income children in New Mexico, and an opportunity to expand health care for thousands more," stated Governor Richardson. "Of the estimated 94,000 children uninsured in New Mexico, nearly 50,000 qualify for either the Medicaid or SCHIP programs. I urge you to join the rest New Mexico's delegation, and do what is right for the people of our state, and vote to override the President's veto of the children's health care reauthorization legislation."

In September, Gov. Richardson and 29 other Governors urged Bush to sign the SCHIP reauthorization. The State of New Mexico will also file an 'amicus curiae' or friend of the court brief in support of New York's lawsuit to protect the flexibility states in the State Children's Health Insurance Program.

Text of the letter:

October 15, 2007

The Honorable Steve Pearce
Congressman
U.S. House of Representatives
1607 Longworth HOB
Washington DC, 20515

Dear Congressman Pearce:

As you are aware, Congress has a very important vote coming up this week that will determine the future of the State Children's Health Insurance Program (SCHIP).  SCHIP is a vital program for New Mexico's children as it currently covers 8,700 children with an additional 11,000 children benefiting with some SCHIP funding.

I am writing to urge you to vote to override the President's veto of this bipartisan legislation, which Senators Bingaman and Domenici, as well as Representatives Udall and Wilson voted to support.   The SCHIP reauthorization legislation will benefit New Mexico's hard working families who currently lack the health insurance coverage they need to be successful in life.

There are some misconceptions about the SCHIP funding in New Mexico, such as who it covers and how the funding is allowed to be used to cover both children and adults.  I would like to provide you with the facts of the SCHIP program in New Mexico in order for you to have the best information prior to this important vote.

SCHIP in New Mexico covers children between the income levels of 185 percent and 235 percent of the Federal Poverty Level (FPL), or up to $40,356 annual income for a family of three.  There are approximately 8,700 children currently in this category.

New Mexico expanded Medicaid coverage for children up to 185 percent of FPL prior to the implementation of SCHIP in 1997, and as such we were prevented from using SCHIP funds for those kids below 185 percent of FPL.

Because of those limitations, New Mexico began to accumulate unspent SCHIP funds.  Legislation introduced by Senator Bingaman helped New Mexico and other states in our situation that were being penalized from using SCHIP funds for lower-income children.  This legislation allows New Mexico to use some SCHIP funds for approximately 11,000 children whose family income is 150 percent of FPL, or about $25,764 for a family of three.

The reauthorization legislation that President Bush vetoed would allow New Mexico to use SCHIP funds for an additional 11,000 children whose family income is 133 percent of FPL or about $22,848 for a family of three.

New Mexico received a waiver from the Centers for Medicare and Medicaid Services (CMS) that allows the state to use the unspent SCHIP funds to cover working uninsured adults ages 19-64 through the State Coverage Insurance Program (SCI).  This public/private partnership operated by New Mexico managed care organizations covers adults up to 200 percent of the Federal Poverty level for approximately 10,000 people.  SCI is an employer-based program where the employer pays a $75 monthly premium per employee, the employee pays up to $35 per month depending on income, and the state and federal government pays the remainder.

In our state the SCHIP program invests $140.0 million ($124.2 million of federal funds) to assure the health of our children, and through the CMS federal waiver our state spends a fraction of those funds, $33.9 million ($27.2 million of federal funds), on working adults. 

The SCHIP reauthorization legislation vetoed by President Bush would allow our state to offer health coverage to the thousands of low-income children who are currently uninsured.  At the same time, the SCHIP reauthorization legislation vetoed by President Bush phases out the use of SCHIP funds for adults, eliminating health care coverage for approximately 10,000 people.

The reauthorization of the current SCHIP program is vital for assuring the health of tens of thousands of low-income children in New Mexico, and an opportunity to expand health care for thousands more.  Of the estimated 94,000 children uninsured in New Mexico, nearly 50,000 qualify for either the Medicaid or SCHIP programs. 

I urge you to join the rest of New Mexico's delegation in doing what is right for the people of our state, and vote to override the President's veto of the SCHIP reauthorization legislation.

Sincerely,

Bill Richardson
Governor                                             
State of New Mexico