According to a recent article on Modern Healthcare, the President has asked the United States Department of Health and Human Services (HHS) to withdraw a barrier which does not allow children of higher-income families to enroll in the State Children’s Health Insurance Program (SCHIP).  Under the current program, 95% of all children that fall into lower income groups must be registered with the program before other children are enrolled.  President Obama has stated that “As a result, tens of thousands of children have been denied healthcare coverage.”

Many industry watchdogs see this as opening the door for state expansion of the program.  Obama issued the directive in a memorandum to the secretary of the HHS.  Since the position is as of yet unfilled, it is a de facto directive that the policy is no longer in effect.  In May of 2008 the CMS was taken to task over the policy over the fact that they had not reported it to Congress before or after it took effect. 

In addition, Obama has signed a bill into law pledging $32.8 Billion to SCHIP over the next 4 1/2 years which will offer additional medical coverage to 4.1 million more children than the current program.  The bill is being primarily funded by a tax increase on cigarettes and other tobacco products.

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