Tobacco

President Vetoes SCHIP Expansion for Second Time

Tobacco tax hike still sticking point, along with higher-income eligibility

WASHINGTON -- President Bush vetoed legislation Wednesday that would have expanded government health insurance for children, his second rejection of an effort by Congress to dramatically increase funding for the State Children's Health Insurance Program (SCHIP), said the Associated Press.

The president has opposed using an increased tobacco tax to fund the expansion. The bill includes a 61-cent rise in the federal tax on a pack of cigarettes, as well as tax increases on other tobacco products. Bush said the bill was unacceptable becauselike the first oneit allows adults into the program, [image-nocss] would cover people in families with incomes above the U.S. median and raises taxes.

The bill passed the Senate by a veto-proof margin, but not the House. Even after the bill was approved, negotiations continued to find a compromise that would attract enough Republican lawmakers to override Bush's expected veto. But that effort was unsuccessful.

The vetoed bill would have increased federal funding for SCHIP by $35 billion over five years to add an about four million people to the program that provides insurance coverage for children from families who earn too much to qualify for Medicaid, but cannot afford private insurance. The joint federal-state program currently provides benefits to about six million people, mostly children.

Bush has demand that nearly all poor children eligible for the program be found and enrolled before any in higher-income families could be covered. He originally proposed adding $5 billion to the program over five years, but later said he was willing to go higher as long as his conditions were met.

Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.

Multimedia

Exclusive Content

Snacks & Candy

How Convenience Stores Can Improve Meat Snack, Jerky Sales

Innovation, creative retailers help spark growth in the snack segment

Technology/Services

C-Stores Headed in the Right Direction With Rewards Programs

Convenience operators are working to catch up to the success of loyalty programs in other industries

General Merchandise/HBC

How Convenience Stores Can Prepare for Summer Travel Season

Vacationers more likely to spend more for premium, unique products, Lil’ Drug Store director says

Trending

More from our partners