SUBJECT: Governor Speaks Out Against Bush Administration Proposal to Gut Children’s Health Care Program

Montpelier, Vt. -- Governor Douglas today issued the following statement in response to the Bush Administration’s new proposal to restrict funding for the State Children’s Health Insurance Program (SCHIP) to children below 250% of the federal poverty level:

“I am disappointed and dismayed by the Bush Administration’s recent actions regarding SCHIP and by the shortsightedness that seems to continually emanate from Washington.

“In Vermont, we have long recognized the benefits of ensuring health care coverage for children and we rank first in the country in terms of number of children with health care coverage. While in Vermont we are moving ahead and leading the nation in our health care reform efforts, Washington seems stuck in a mire of partisan politics and stalemate.

“If the Centers for Medicare and Medicaid Services proposals are implemented, over 2,100 Vermont children could potentially lose coverage and the state could lose $3.8 million in funding. I will do all I can – through my leadership role in the National Governors Association and working with our Congressional delegation – to ensure that this unconscionable reversal of federal policy never happens.”

ADDITIONAL BACKGROUND Vermont uses SCHIP funds to cover children from 225% to 300% of the federal poverty level, as part of the Dr. Dynasaur program. This funding is budgeted and approved by the Emergency Board at $5.6 million for SFY 2008.

The caseload for SFY 2008 is projected to be 3,171 children. The program requires a family premium of $40 per month. The Office of Vermont Health Access, which administers the program, estimates that if two thirds of the children and expenditures are above 250% then 2,125 children would lose coverage and VT would lose $3.8 million in total spending if the Bush Administration proposals are implemented. ###