President Bush is expected to veto the proposed expansion of the State Children’s Health Insurance Program (SCHIP). If that happens, Congress should not engage in a protracted political contest with the White House. Rather, the proper response would be to propose a compromise that attracts broad bipartisan support. Such a compromise would aim to expand coverage for uninsured children while helping to preserve existing coverage for modest-income families who are struggling to make ends meet. The best way to achieve this goal would be to combine a reauthorized SCHIP program with a tax credit for children in families just above the basic eligibility level for SCHIP.

This dual approach has a long history and broad support. Just last January, a bipartisan coalition called the Health Coverage Coalition for the Uninsured (HCCU) endorsed an initiative along these lines. The HCCU included such groups as the American Medical Association, the American Association of Retired Persons (AARP), Families USA, the Catholic Health Association, and major hospital and insurance organizations.

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