[Congressional Record Volume 152, Number 117 (Tuesday, September 19, 2006)]
[Senate]
[Pages S9727-S9728]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      BY Mr. ROCKEFELLER:
  S. 3913. A bill to amend title XXI of the Social Security Act to 
eliminate funding shortfalls for the State Children's Health Insurance 
Program (SCHIP) for fiscal year 2007; to the Committee on Finance.
  Mr. ROCKEFELLER. Mr. President, I rise today to introduce legislation 
to protect the vital health insurance coverage that millions of our 
Nation's children receive through the Children's Health Insurance 
Program (CHIP). As I stand here today, at least 17 States face looming 
Federal funding shortfalls of as much as $900 million, the cost of 
covering more than half a million children.
  Mr. Dingell, the distinguished ranking member of the House Energy and 
Commerce Committee, and I have worked for several weeks to craft a bill 
that reflects the intentions of this program when it was first created 
nearly ten years ago: to provide comprehensive health insurance 
coverage for children. Additionally, this legislation addresses an 
ongoing set of challenges associated with the program's block grant 
financing structure. I am pleased to report that Mr. Dingell and others 
will be introducing companion legislation in the House of 
Representatives today.
  We are introducing the Keep Children Covered Act now because it is 
critically important that we consider and pass this legislation before 
we adjourn this year. No one can dispute the success of the CHIP 
program in enrolling and providing coverage for more then 6 million 
children nationwide. In 2005, West Virginia provided coverage for more 
then 38,000 children, and an expansion to reach additional children is 
currently underway. This is quite an accomplishment. But, the ongoing 
success of this program depends on adequate Federal funding for all 
States.
  It is a sad truth that persistent barriers to health care coverage 
have resulted in annual increases in the total number of uninsured 
Americans. Today, 46 million Americans are uninsured for all or most of 
the year. I am particularly troubled in that, in 2005, the number of 
uninsured children increased for the first time since the CHIP program 
was implemented in 1998. The number of uninsured children now stands at 
8.3 million.
  This is unacceptable. We have taken a significant step back in terms 
of covering children, and this will only get worse if the $900 million 
Federal funding shortfall is not immediately addressed. Children are 
the least expensive group to insure, and our future depends on their 
good health and well-being. There is clear evidence that children with 
consistent access to health care services are more likely to become 
healthy adults and successful members of our communities. Like West 
Virginia, a number of States have expressed their willingness to expand 
the CHIP program, but we must hold up our end of the bargain and supply 
them with the resources necessary to make these positive changes. It 
would be irresponsible for us to allow additional children to go 
without this much needed access to care. It would also run counter to 
the goals Congress set out when we created CHIP in 1997.
  Preserving health care coverage for children is not an objective 
beyond our reach. Although it represents only a temporary fix of the 
larger funding issues facing CHIP, the bill I am introducing today will 
alleviate the fiscal year 2007 shortfalls and ensure that children 
currently enrolled in CHIP do not lose their coverage. I congratulate 
my colleagues on the House side, Congressmen Deal and Norwood, who 
introduced similar legislation at the end of last week. They understand 
this is something we can come together on, pass, and enact into law 
before Congress recesses for the elections. It is my hope that Congress 
will act on a bipartisan basis to more comprehensively address the 
long-term financial challenges facing CHIP when the program is 
reauthorized next year.
  In the meantime, I urge my colleagues to make children's health care 
a priority during the limited time we have left this session. Working 
families depend on this program in order to access the health care 
services--like check-ups and prescriptions--that their children need. I 
hope we will not let them down. We should not.
  I ask unanimous consent that the full text of this 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. 3913

       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 ``Keep Children Covered Act of 
     2006''.

     SEC. 2. ELIMINATION OF SCHIP FUNDING SHORTFALLS FOR FISCAL 
                   YEAR 2007.

       (a) In General.--Section 2104 of the Social Security Act 
     (42 U.S.C. 1397dd) is amended--
       (1) in each of subsections (a), (b)(1), and (c)(1), by 
     striking ``subsection (d)'' and inserting ``subsections (d) 
     and (h)''; and
       (2) by adding at the end the following new subsection:
       ``(h) Special Rule for Redistribution of Unspent Fiscal 
     Year 2004 Allotments and Additional Allotments To Eliminate 
     Fiscal Year 2007 Funding Shortfalls.--
       ``(1) Special rule for redistribution of fiscal year 2004 
     allotments.--

[[Page S9728]]

       ``(A) In general.--In the case of a State that expends all 
     of its allotment under subsection (b) or (c) of this section 
     for fiscal year 2004 by the end of fiscal year 2006 and is an 
     initial shortfall State described in subparagraph (B), the 
     Secretary shall redistribute to the State under subsection 
     (f) of this section (from the fiscal year 2004 allotments of 
     other States) the following amount:
       ``(i) State.--In the case of one of the 50 States or the 
     District of Columbia, the amount specified in subparagraph 
     (C)(i) (less the total of the amounts under clause (ii)), 
     multiplied by the ratio of the amount specified in 
     subparagraph (C)(ii) for the State to the amount specified in 
     subparagraph (C)(iii).
       ``(ii) Territory.--In the case of a commonwealth or 
     territory described in subsection (c)(3), an amount that 
     bears the same ratio to 1.05 percent of the amount specified 
     in subparagraph (C)(i) as the ratio of the commonwealth's or 
     territory's fiscal year 2004 allotment under subsection (c) 
     bears to the total of all such allotments for such fiscal 
     year under such subsection.
       ``(B) Initial shortfall state described.--For purposes of 
     subparagraph (A), an initial shortfall State is a State with 
     a State child health plan approved under this title for which 
     the Secretary estimates, on the basis of the most recent data 
     available to the Secretary as of the date of the enactment of 
     this subsection, that the projected Federal expenditures 
     under such plan for such State for fiscal year 2007 will 
     exceed the sum of--
       ``(i) the amount of the State's allotments for each of 
     fiscal years 2005 and 2006 that will not be expended by the 
     end of fiscal year 2006; and
       ``(ii) the amount of the State's allotment for fiscal year 
     2007.
       ``(C) Amounts used in computing redistributions for fiscal 
     year 2004 allotments.--For purposes of subparagraph (A)(i)--
       ``(i) the amount specified in this clause is the total 
     amount of unspent fiscal year 2004 allotments available for 
     redistribution under subsection (f);
       ``(ii) the amount specified in this clause for an initial 
     shortfall State is the amount the Secretary determines will 
     eliminate the estimated shortfall described in subparagraph 
     (B) for the State; and
       ``(iii) the amount specified in this clause is the total 
     sum of the amounts specified in clause (ii) for all initial 
     shortfall States.
       ``(2) Additional allotments to eliminate fiscal year 2007 
     funding shortfalls remaining after redistribution of unspent 
     fiscal year 2004 allotments.--
       ``(A) In general.--In addition to the allotments provided 
     under subsection (b) and (c) for fiscal year 2007, the 
     Secretary shall allot to each remaining shortfall State 
     described in subparagraph (B) such amount as the Secretary 
     determines will eliminate the estimated shortfall described 
     in such subparagraph for the State.
       ``(B) Remaining shortfall state described.--For purposes of 
     subparagraph (A), a remaining shortfall State is a State 
     (including a commonwealth or territory described in 
     subsection (c)(3)) with a State child health plan approved 
     under this title for which the Secretary estimates, on the 
     basis of the most recent data available to the Secretary as 
     of the date of the enactment of this subsection, that the 
     projected federal expenditures under such plan for such State 
     for fiscal year 2007 will exceed the sum of--
       ``(i) the amount of the State's allotments for each of 
     fiscal years 2005 and 2006 that will not be expended by the 
     end of fiscal year 2006;
       ``(ii) the amount of the State's allotment for fiscal year 
     2007; and
       ``(iii) the amount, if any, of unspent allotments for 
     fiscal year 2004 that are to be redistributed to the State 
     during fiscal year 2007 in accordance with subsection (f) and 
     paragraph (1).
       ``(C) 1-year availability; no redistribution of unexpended 
     additional allotments.--Notwithstanding subsections (e) and 
     (f), amounts allotted to a remaining shortfall State pursuant 
     to this paragraph shall only remain available for expenditure 
     by the State through September 30, 2007. Any amounts of such 
     allotments that remain unexpended as of such date shall not 
     be subject to redistribution under subsection (f) and shall 
     revert to the Treasury on October 1, 2007.
       ``(D) Appropriation; allotment authority.--For the purpose 
     of providing additional allotments to remaining shortfall 
     States under this paragraph there is appropriated, out of any 
     funds in the Treasury not otherwise appropriated, such sums 
     as are necessary for fiscal year 2007.''.
       (b) Extending 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)) is amended by striking ``or 2005'' and 
     inserting ``2005, or 2006''.
       (c) Effective Date.--The amendments made by this section 
     apply to items and services furnished on or after October 1, 
     2006, without regard to whether or not regulations 
     implementing such amendments have been issued.
       (d) Period of Effectiveness.--Section 2104(h)(2) of the 
     Social Security Act (as added by subsection (a)) shall 
     terminate on September 30, 2007, and shall be considered to 
     have expired notwithstanding section 257 of the Balanced 
     Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 
     907).

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