On June 26, 2008, U.S. Senator Frank Lautenberg (D-NJ) reintroduced a measure intended to ensure that children have access to healthcare.  The measure was inserted into the Fiscal Year 2009 Labor-Health and Human Services-Education Appropriations bill (the “Bill”).  The House of Representatives had previously removed Senator Lautenberg’s measure from the Emergency Supplemental Appropriations bill where it had been inserted as an amendment.

Senator Lautenberg’s health insurance language is intended to counter the Bush Administration’s CMS 8/17/07 Directive (the “Directive”).  The Directive, issued by the Centers for Medicare and Medicaid to State Children’s Health Insurance Program directors, imposes new restrictions and conditions on states’ abilities to provide health coverage to children with family incomes above 250% of the federal poverty level.  States that choose to cover children above 250% of the federal poverty level will have to comply with the Directive by August 17, 2008, fund coverage with state dollars or face federal penalties.  According to Senator Lautenberg, New Jersey currently has thousands of children enrolled in the State’s Family Care program that are at risk of loosing coverage when the Directive takes effect, where the eligibility level is 350% of the federal poverty level.

The Bill, which was passed by the Senate Appropriations committee, will now head to the Senate floor for a full hearing.

For a copy of the Bill click here.