[Congressional Record Volume 150, Number 103 (Thursday, July 22, 2004)]
[Senate]
[Pages S8747-S8751]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. ROCKEFELLER (for himself, Mr. Chafee, Mr. Kennedy, and Ms. 
        Snowe):
  S. 2759. A bill to amend title XXI of the Social Security Act to 
modify the rules relating to the availability and method of 
redistribution of unexpended SCHIP allotments, and for other purposes; 
to the Committee on Finance.
  Mr. ROCKEFELLER. Mr. President, I rise today with my friend and 
colleague from Rhode Island, Mr. Chafee, to introduce legislation that 
will protect the health and well-being of America's children by 
restoring funds to the Children's Health Insurance Program (CHIP). In 
1997, Senator Chafee and I worked together to create the Children's 
Health Insurance Program as part of the Balanced Budget Act. I am proud 
of the work we have done over the years to make improvements to this 
critical program, which helps so many of our nation's children.
  Since its inception, the CHIP program has been an unqualified 
success. It has directly contributed to the decline in the number of 
children without health insurance in recent years. Last year, 5.8 
million children were enrolled in CHIP, including over 35,000 children 
in my home state of West Virginia.
  However, the continued success of the CHIP program is in serious 
jeopardy. A number of States are projected to have insufficient Federal 
funding to sustain their existing CHIP programs over the next several 
years. On September 30, 2004, $1.07 billion in Federal CHIP funds are 
scheduled to expire and revert to the national treasury, despite 
growing unmet need in a number of States. If Congress does not act to 
preserve these funds, States will have no choice but to cut coverage 
for low-income children.
  Last year, we acted to protect children's health care by passing 
legislation to prevent $2.7 billion in Federal funding for CHIP from 
reverting to the treasury. While this legislation went a long way to 
address immediate CHIP funding shortfalls, it did not address the long-
term financing problems that will persist until CHIP is reauthorized in 
fiscal year 2007. The legislation we are introducing today would solve 
the current CHIP financing problems and preserve health care coverage 
for children through reauthorization, when Congress will have to 
consider a better Federal financing mechanism for the program.
  I am pleased to be joined by Senators Chafee, Kennedy, and Snowe in 
introducing legislation that represents a comprehensive approach to 
shoring up CHIP financing through reauthorization, thereby preventing a 
devastating

[[Page S8750]]

enrollment decline and facilitating continued CHIP growth. Our bill 
would extend the availability of the $1.07 billion in expiring CHIP 
funds and target some of the funds to the States that need them the 
most. It would also establish redistribution rules that will keep CHIP 
money in the CHIP program through fiscal year 2007.
  The Children's Health Protection and Improvement Act will allow 
States to continue offering health care to our Nation's children--the 
most vulnerable population among us. It will ensure that healthy 
children have access to preventative check-ups and exams and that sick 
children can get the medication and treatment they need. This 
legislation enjoys bipartisan support and is endorsed by the National 
Governor's Association (NGA).
  I urge my colleagues to make enactment of this critical legislation a 
priority. Congress must act on this legislation this year. We must do 
this when we return. I recognize that we have very few legislative days 
left, but this must be at the top of our list because our children 
cannot afford to wait. We must guarantee the continued success of the 
CHIP program and sustain the significant progress CHIP has made over 
the years in reducing the ranks of uninsured children.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 2759

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Children's Health Protection 
     and Improvement Act of 2004''.

     SEC. 2. CHANGES TO RULES FOR REDISTRIBUTION AND EXTENDED 
                   AVAILABILITY OF 1998 THROUGH 2004 SCHIP 
                   ALLOTMENTS.

       Section 2104(g) of the Social Security Act (42 U.S.C. 
     1397dd(g)), as amended by Public Law 108-74 (117 Stat. 892), 
     is amended--
       (1) in the subsection heading by striking ``, 1999, 2000, 
     and 2001'' and inserting ``Through 2004''; and
       (2) in paragraph (1)--
       (A) in subparagraph (A)--
       (i) in the matter preceding clause (i)--

       (I) by inserting ``or for fiscal year 2002 by the end of 
     fiscal year 2004, or for fiscal year 2003 by the end of 
     fiscal year 2005, or for fiscal year 2004 by the end of 
     fiscal year 2006,'' after ``fiscal year 2003,''; and
       (II) by striking ``or 2001'' and inserting ``2001, 2002, 
     2003, or 2004'';

       (ii) in clause (i)--

       (I) in subclause (III), by striking ``or'' at the end;
       (II) in subclause (IV), by striking the period at the end 
     and inserting a semicolon; and
       (III) by adding at the end the following:
       ``(V) the fiscal year 2002 allotment, the amount specified 
     in subparagraph (E)(i) (less the total of the amounts under 
     clause (ii) for such fiscal year), multiplied by the ratio of 
     the amount specified in subparagraph (E)(ii) for the State to 
     the amount specified in subparagraph (E)(iii);
       ``(VI) the fiscal year 2003 allotment, the amount specified 
     in subparagraph (F)(i) (less the total of the amounts under 
     clause (ii) for such fiscal year), multiplied by the ratio of 
     the amount specified in subparagraph (F)(ii) for the State to 
     the amount specified in subparagraph (F)(iii); or
       ``(VII) the fiscal year 2004 allotment, the amount 
     specified in subparagraph (G)(i) (less the total of the 
     amounts under clause (ii) for such fiscal year), multiplied 
     by the ratio of the amount specified in subparagraph (G)(ii) 
     for the State to the amount specified in subparagraph 
     (G)(iii).''; and

       (iii) in clause (ii), by striking ``or 2001'' and inserting 
     ``2001, 2002, 2003, or 2004'';
       (B) in subparagraph (B)--
       (i) in clause (ii), by inserting ``but subject to paragraph 
     (4)'' after ``subsection (e)'';
       (ii) in clause (iii)--

       (I) by inserting ``but subject to paragraph (4)'' after 
     ``subsection (e)''; and
       (II) by striking ``and'' at the end;

       (iii) by redesignating clause (iv) as clause (vii); and
       (iv) by inserting after clause (iii), the following:
       ``(iv) notwithstanding subsection (e) but subject to 
     paragraph (4), with respect to fiscal year 2002, shall remain 
     available for expenditure by the State through the end of 
     fiscal year 2006;
       ``(v) notwithstanding subsection (e), with respect to 
     fiscal year 2003, shall remain available for expenditure by 
     the State through the end of fiscal year 2007; and
       ``(vi) with respect to fiscal year 2004, subsection (e) 
     shall apply; and''; and
       (C) by adding at the end the following:
       ``(E) Amounts used in computing redistributions for fiscal 
     year 2002.--For purposes of subparagraph (A)(i)(V)--
       ``(i) the amount specified in this clause is the amount 
     specified in paragraph (2)(B)(i)(I) for fiscal year 2002, 
     less the total amount remaining available pursuant to 
     paragraph (2)(A)(v);
       ``(ii) the amount specified in this clause for a State is 
     the amount by which the State's expenditures under this title 
     in fiscal years 2002, 2003, and 2004 exceed the State's 
     allotment for fiscal year 2002 under subsection (b); and
       ``(iii) the amount specified in this clause is the sum, for 
     all States entitled to a redistribution under subparagraph 
     (A) from the allotments for fiscal year 2002, of the amounts 
     specified in clause (ii).
       ``(F) Amounts used in computing redistributions for fiscal 
     year 2003.--For purposes of subparagraph (A)(i)(VI)--
       ``(i) the amount specified in this clause is the amount 
     specified in paragraph (2)(B)(i)(I) for fiscal year 2003, 
     less the total amount remaining available pursuant to 
     paragraph (2)(A)(vi);
       ``(ii) the amount specified in this clause for a State is 
     the amount by which the State's expenditures under this title 
     in fiscal years 2003, 2004, and 2005 exceed the State's 
     allotment for fiscal year 2003 under subsection (b); and
       ``(iii) the amount specified in this clause is the sum, for 
     all States entitled to a redistribution under subparagraph 
     (A) from the allotments for fiscal year 2003, of the amounts 
     specified in clause (ii).
       ``(G) Amounts used in computing redistributions for fiscal 
     year 2004.--For purposes of subparagraph (A)(i)(VII)--
       ``(i) the amount specified in this clause is the amount 
     specified in paragraph (2)(B)(i)(I) for fiscal year 2004, 
     less the total amount remaining available pursuant to 
     paragraph (2)(A)(vii);
       ``(ii) the amount specified in this clause for a State is 
     the amount by which the State's expenditures under this title 
     in fiscal years 2004, 2005, and 2006 exceed the State's 
     allotment for fiscal year 2004 under subsection (b); and
       ``(iii) the amount specified in this clause is the sum, for 
     all States entitled to a redistribution under subparagraph 
     (A) from the allotments for fiscal year 2004, of the amounts 
     specified in clause (ii).'';
       (3) in paragraph (2)--
       (A) in the paragraph heading by striking ``2001'' and 
     inserting ``2004''; and
       (B) in subparagraph (A)--
       (i) in clause (i), by striking ``Of'' and inserting 
     ``Subject to paragraph (4), of'';
       (ii) in clause (ii), by striking ``Of'' and inserting 
     ``Subject to paragraph (4), of'';
       (iii) in clause (iii), by striking ``Of'' and inserting 
     ``Subject to paragraph (4), of'';
       (iv) in clause (iv), by striking ``Of'' and inserting 
     ``Subject to paragraph (4), of''; and
       (v) by adding at the end the following:
       ``(v) Fiscal year 2002 allotment.--Subject to paragraph 
     (4), of the amounts allotted to a State pursuant to this 
     section for fiscal year 2002 that were not expended by the 
     State by the end of fiscal year 2004, 50 percent of that 
     amount shall remain available for expenditure by the State 
     through the end of fiscal year 2006.
       ``(vi) Fiscal year 2003 allotment.--Of the amounts allotted 
     to a State pursuant to this section for fiscal year 2001 that 
     were not expended by the State by the end of fiscal year 
     2005, 50 percent of that amount shall remain available for 
     expenditure by the State through the end of fiscal year 2007.
       ``(vii) Fiscal year 2004 allotment.--Of the amounts 
     allotted to a State pursuant to this section for fiscal year 
     2004 that were not expended by the State by the end of fiscal 
     year 2006, 50 percent of that amount shall remain available 
     for expenditure by the State through the end of fiscal year 
     2007.'';
       (4) in paragraph (3)--
       (A) by striking ``or fiscal year 2001'' and inserting 
     ``fiscal year 2001, fiscal year 2002, fiscal year 2003, or 
     fiscal year 2004,''; and
       (B) by striking ``or November 30, 2003,'' and inserting 
     ``November 30, 2003, November 30, 2004, November 30, 2005, or 
     November 30, 2006,''; and
       (5) by adding at the end the following:
       ``(4) Additional extended availability of fiscal years 1998 
     through 2002 allotments.--
       ``(A) Fiscal year 1998, 1999, and 2000 allotments.--With 
     respect to any amounts allotted to a State pursuant to this 
     section for fiscal years 1998, 1999, or 2000 that were 
     redistributed to a State under paragraph (1), or whose 
     availability to a State was extended through the end of 
     fiscal year 2004 under paragraph (2), that were not expended 
     by the State by the end of fiscal year 2004, the following 
     rules shall apply:
       ``(i) 30 percent of such amounts shall remain available for 
     expenditure by the State through the end of fiscal year 2007.
       ``(ii) The remainder of such amounts shall be redistributed 
     to States that have fully expended the amount of their fiscal 
     year 2002 allotments under this section in the same ratio as 
     unexpended fiscal year 2002 allotments are redistributed 
     under paragraph (1)(A)(i)(V) to such States and the amounts 
     redistributed under this clause shall remain available for 
     expenditure through the end of fiscal year 2007.
       ``(B) Fiscal year 2001 allotments.--With respect to any 
     amounts allotted to a State pursuant to this section for 
     fiscal year 2001 that were redistributed to a State under 
     paragraph (1), or whose availability to a State was extended 
     through the end of fiscal year 2005 under paragraph (2), that 
     were not expended by the State by the end of fiscal year 
     2005, the following rules shall apply:

[[Page S8751]]

       ``(i) 30 percent of such amounts shall remain available for 
     expenditure by the State through the end of fiscal year 2007.
       ``(ii) The remainder of such amounts shall be redistributed 
     to States that have fully expended the amount of their fiscal 
     year 2003 allotments in the same ratio as unexpended fiscal 
     year 2003 allotments are redistributed under paragraph 
     (1)(A)(i)(VI) to such States and the amounts redistributed 
     under this clause shall remain available for expenditure 
     through the end of fiscal year 2007.
       ``(C) Fiscal year 2002 allotments.--With respect to any 
     amounts allotted to a State pursuant to this section for 
     fiscal year 2002 that were redistributed to a State under 
     paragraph (1), or whose availability to a State was extended 
     through the end of fiscal year 2006 under paragraph (2), that 
     were not expended by the State by the end of such fiscal 
     year, the following rules shall apply:
       ``(i) 30 percent of those amounts shall remain available 
     for expenditure by the State through the end of fiscal year 
     2007.
       ``(ii) The remainder of such amounts shall be redistributed 
     to States that have fully expended the amount of their fiscal 
     year 2004 allotments in the same ratio as unexpended fiscal 
     year 2004 allotments are redistributed under paragraph 
     (1)(A)(i)(VII) to such States and the amounts redistributed 
     under this clause shall remain available for expenditure 
     through the end of fiscal year 2007.''.

     SEC. 3. CONTINUED AUTHORITY FOR QUALIFYING STATES TO USE 
                   CERTAIN FUNDS FOR MEDICAID EXPENDITURES.

       Section 2105(g)(1)(A) of the Social Security Act (42 U.S.C. 
     1397ee(g)(1)(A)), as added by Public Law 108-74 (117 Stat. 
     895) and amended by Public Law 108-127 (117 Stat. 134), is 
     amended by striking ``or 2001'' and inserting ``2001, 2002, 
     2003 or 2004''.

  Mr. CHAFEE. Mr. President, I am pleased to join Senator Rockefeller 
and others today in introducing a bipartisan proposal to extend and 
redistribute expiring State Children's Health Insurance Program (SCHIP) 
funds.
  This legislation will allow States to retain $1.07 billion in funds 
originally allocated for fiscal years 1998, 1999, and 2000, and 
currently scheduled to revert to the Federal Treasury on September 30, 
2004. The bill also applies a 70-30 redistribution formula to the 1998-
2000 allotments. States with surplus funds scheduled to revert in 
September will keep 30 percent of the money and cede 70 percent to 
States that have exhausted their allotments. Additionally, the bill 
will continue the current law redistribution rules through 2007. It 
allows States unable to spend all of their fiscal year 2002, 2003, and 
2004 SCHIP allotments within the 3-year limit, to keep half of the 
unspent funds. The other 50 percent would be redistributed to States 
that have exhausted their allotments.
  This proposal will prevent States from losing unexpended SCHIP 
allotments and allows States like Rhode Island, with efficient programs 
and a high-level of need, to receive redistributed money. Without this 
proposal, the overwhelming success of State SCHIP programs and quality 
health coverage to millions of uninsured children will be jeopardized.
  Preserving the expiring funds is essential to guaranteeing that more 
than 200,000 children will not lose their health insurance coverage 
between now and 2007. At a time when our Nation's uninsured rate has 
climbed to 43.6 million, it makes little sense to take away Federal 
funding from States that are desperately trying to enroll needy 
children. This legislation is crucial to many States including my State 
of Rhode Island. Without this remedy, Rhode Island is set to run out of 
SCHIP funds by 2005. At 5 percent, Rhode Island currently has the third 
lowest uninsured rate of any State in the Nation for children. This 
bill will enable Rhode Island to continue offering health coverage to 
this vulnerable population.
  I urge my colleagues to join Senator Rockefeller and me in supporting 
this important legislation. It is a crucial step toward ensuring that 
our Nation's children will have long-term access to quality health 
insurance.
                                 ______