Health Law and Regulation

New Jersey Governor Jon S. Corzine has filed a lawsuit on behalf of the people of New Jersey against the Bush administration for limiting eligibility for the State Children's Health Insurance Program (SCHIP). The lawsuit accuses the Bush administration of surpassing the public rule-making process by changing the program via letter. Arizona, California, Illinois, Maryland, New Hampshire, New York and Washington are also pursuing legal challenges to the President’s directive.

The letter from the Bush administration says that states would no longer receive reimbursements for children in families over 250 percent of the federal poverty level unless they meet specified conditions. As the current program covers children in families up to 350 percent of poverty, the directive, if put into effect, would impact upwards of 10,000 New Jersey children.

"SCHIP is an unqualified bipartisan success in New Jersey and in states across the nation, and the Bush administration's determination to pursue a course of action that will harm our children's health is incomprehensible," Governor Corzine said. "This same administration previously signed off on our decision to cover the 10,000 kids they are now seeking to kick out of SCHIP, and the lawsuit we filed today demonstrates that we will simply not let that happen. Washington should be a partner to states that are trying to cover more children, not an opponent, and I urge the President to reverse course, withdraw the letter, and sign the bipartisan legislation before him."

In addition, the proposed directive would impose severe restraints on state programs. While the current program in New Jersey requires that a child lack health insurance for three months, new restraints would require children to wait an entire year without coverage before becoming eligible for SCHIP.

Several other New Jersey politicians join Corzine and Lautenberg in supporting the lawsuit. Senator Bob Menedez and Congressmen Donald Payne and Frank Pallone criticize the directive as well.

"In Congress and on the state level, we are standing up to the President's misguided plans to limit health coverage for children who have nowhere else to turn. This is a matter of values -- do we value our children and do our actions match our values? The administration's actions do not," said Senator Menendez.

"Because of SCHIP, many families are able to rest a little easier in knowing their children's healthcare needs are being met through this critical program," said Congressman Payne. "I stand with Governor Corzine in insisting that New Jersey residents be given the opportunity to keep this important health initiative."

Source: State of New Jersey Office of the Governor, October 1, 2007

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