SCHIP veto maintained, negotiations begin

The attempt by the Democratic party-dominated US Congress to overturn Republican President George W Bush's veto of the States Children's Health Insurance Program Act (Marketletters passim) has failed, following a vote in the House of Representatives on October 19. Despite intensive lobbying in favor of proposals to increase free health insurance coverage (paid for with tax increases, including a significant rise in tobacco levies), the final vote was 273 to 156, 17 short of the two-thirds majority required to overturn Pres Bush's veto.

The SCHIP has lapsed since the end of September and is likely to be maintained on a temporary basis until November 15. The President favors maintaining the present entitlement thresholds, including free prescription drugs for beneficiary children, but raising the amount available to subsidize lower income families, while the Democrats and some Republicans, propose an extension of the program to include middle-class households, a move which some argue is a step towards a universal health care system. The White House said it is prepared to negotiate with Congress on this issue.

Supporters of the extended SCHIP were quick to attack those backing Pres Bush's position. The Campaign for America's Future co-director Roger Hickey said: "156 House Members declared themselves enemies of children and families with this vote." By dragging out this issue, both sides, conservative and liberal, calculate that they harden support in their natural poles of support in the run-up to elections in 2008.