Westmoreland: The Taxing Reality of Kids’ Health Care Plan

8/4/07 Not one vote has been cast in the 2008 presidential race, yet Democrats in Congress are acting as if Hillary Clinton’s already in the White House.

This week, House Democrats passed a huge new “Hillary Care” entitlement for children’s health insurance. The bill greatly expands the State Children’s Health Insurance Program, which was originally designed to cover children from working families who earn too much for Medicaid but too little to afford private insurance. In Georgia, the federal-state partnership pays for the popular and well-known PeachCare program.

Republicans want the children’s health care program to continue; in fact, it was a GOP Congress that created and passed the program 10 years ago. But Democrats have exploded a well-run program aimed at low-income families into a huge new entitlement that will leave taxpayers with an equally large bill.

For starters, the original children’s health care program, which expires in September, cost federal taxpayers about $40 billion over 10 years. The House Democrats hope to spend almost $130 million federal dollars in that amount of time. That’s a staggering increase. 

Making matters even worse, Democrats are looking to transform programs such as PeachCare from a grant program with set costs into an entitlement program with no limit on spending. At a time when we desperately need entitlement reform because of massive shortfalls looming for Medicare and Social Security, the last thing Washington needs to do is put taxpayers even farther out on the limb. If you’re in debt up to your ears and your credit cards are maxed out, a new credit card is not the answer to your problem. 

So where is all this money going? Instead of focusing on low-income, uninsured children, the Democrats would cover “children” up to the age of 21 in families that earn up to 400 percent of the federal poverty level – that’s $82,000 a year for a family of four. The vast majority of children in this demographic are already covered by private insurance. 

Even more upsetting to my constituents in Georgia’s 3rd Congressional District, this bill opens the floodgates to covering illegal immigrants. At a time when the United States is trying desperately to halt the flow of illegal immigration into this country, Democrats axed the current requirement that states document citizenship before giving health benefits. The last thing we need to do is create a new incentive to enter this country illegally. 

Democrats plan to pay for this new spending with a new tax and cuts to Medicare. 

The legislation tacks on another 45 cent federal tax on a pack of cigarettes, raising the total federal tax to 84 cents per pack. This tax disproportionately hits the American working poor that the program ostensibly aims to help. Further, it’s a declining revenue source that will be unable to fund the program in the long-term. Who’s going to pay the taxes then?  

The cuts strike $157 billion from Medicare Advantage, devastating a program that gives seniors greater choice in their health care plans. More than 8.3 million seniors have chosen Medicare Advantage since it was created four years ago because it allows them to select the health care plan that best suits their needs, from management of chronic illness to their prescription drug benefit. 

We can serve our children in need without new taxes, cuts to Medicare or a leap toward Hillary Care. I supported a plan that increases spending by $5 billion and provides extra money to aid states that have experienced shortfalls. This plan would keep the focus of the children’s health care program on families that need it most, without breaking the bank. 

But the left isn’t looking for practical solutions. It’s laying the path to government-run health care. 

Lynn Westmoreland represents Georgia’s 3rd Congressional District. 

This Heritage Foundation chart demonstrates how the SCHIP program will move many children out of private insurance and onto government rolls, imposing a huge burden on federal and state taxpayers.