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WASHINGTON, DC - U.S. Senator Bob Casey (D-PA) today wrote to President George W. Bush asking him to reverse his recent decision that threatens the health care coverage of almost 2,000 Pennsylvania children.

“I urge you to reverse this unwise course of action that will cause tens of thousands of children to lose their health care coverage,” wrote Senator Casey.  “This decision combined with your inadequate budget request and your threats to veto children’s health insurance legislation pending in the Congress will have a potentially devastating effect on millions of children.”

A copy of the letter is attached.

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August 21, 2007

President George W. Bush

The White House

Washington, DC 20500

Dear Mr. President:

I am deeply concerned about a change you are purporting to implement with respect to health insurance coverage for low income children under Medicaid and the State Children’s Health Insurance Program (SCHIP). This drastic change in Administrative policy comes in the middle of the Congressional debate over children’s health insurance and threatens health care coverage for tens of thousands of children including almost 2,000 in Pennsylvania.

Last Friday evening, the Center for Medicare and Medicaid Services sent a letter to state health officials seeking to change existing statutory and regulatory requirements in reviewing state requests to extend eligibility under SCHIP to children in families above 250 percent of poverty, or $51,625 for a family of four.

The changes outlined in this letter directly contradict waivers that your Administration has granted to 17 states plus the District of Columbia.

You seek to deny states the right to expand coverage to families above 250 percent of poverty if there has been a decline in employer-sponsored coverage of more than 2% over the past 5 years for these families.  Established data has shown that tying a reduction in private coverage to increased access to public programs (otherwise known as the “crowd-out” effect) is inaccurate.  Such an approach completely overlooks other reasons that contribute to employers dropping health insurance coverage, including natural disasters and economic or industry slowdowns. 

Requiring a 12-month period of uninsurance before children can get public coverage is contrary to what many states are doing, with your approval, to ensure that children do not have to endure such risks to achieve coverage. 

I would appreciate a prompt response explaining why the Administration has changed its position now after approving eligibility waivers for 17 states plus the District of Columbia.

More importantly, I urge you to reverse this unwise course of action that will cause tens of thousands of children to lose their health care coverage.  This decision combined with your inadequate budget request and your threats to veto children’s health insurance legislation pending in the Congress will have a potentially devastating effect on millions of children.

Sincerely,

Robert. P Casey, Jr.  

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