Congress’ proposed $35 billion expansion of the State Children’s Health Insurance Program, funded by an increased cigarette tax, could cover 116000...

In a confrontational political move, President Bush vetoed a bipartisan bill Wednesday to expand health insurance coverage for low-income children.

Congress’ proposed $35 billion expansion of the State Children’s Health Insurance Program, funded by an increased cigarette tax, could cover 116,000 uninsured N.C. children whose families don’t qualify for Medicaid but can’t afford private coverage.The state program, N.C. Health Choice, insured 130,116 children as of Sept.1

The U.S. Senate passed the expansion bill with enough votes to override the veto, but Democrats fell just short of a veto-proof two-thirds majority in the House. During the next two weeks, bill supporters will try to convince enough Republicans to change their votes in order to overcome the veto.While many N.C. officials have joined congressional Democrats in lamenting the veto’s potential effect on low-income families, others say the proposed 61-cent cigarette tax increase would harm the state’s tobacco industry, which is No. 1 in the country.

"The burden to pay for this bill falls squarely on North Carolina," U.S. Rep. Robin Hayes, R-N.C., stated in a press release."A dramatic increase in the tobacco excise tax will have grave consequences on the growers, manufacturers and workforce left in the industry, and would be detrimental across the state’s economy."

Jake Parker, national legislative director for the N.C. Farm Bureau, said the bureau hoped to see Congress rely on several sources of revenue, not just a tobacco tax increase."Why don’t you increase taxes on soda or candy manufacturers?" he said. "Some have even suggested taxing California wine."Bush, who wants to increase funding for the SCHIP program by $5 billion instead of the $35 billion proposed in the bill, said he vetoed the bill because an expansion of the program would derail funding meant solely for the country’s poorest children.

N.C. Health Choice depends on about $165 million in annual federal funds. The N.C. General Assembly planned this summer to expand the program for children whose families are at 300 percent of the federal poverty level, rather than the usual 200 percent or below.Jerry Meek, chairman of the N.C. Democratic Party, said the number of uninsured children warrants expansion of the program. "Once again, President Bush and the Republicans show how out of touch they are with the American people," he said.

Brent Woodcox, communications director for the N.C. Republican Party, said that he agrees with Bush’s veto and N.C. senators’ votes against the bill and that plans to expand the program would distract from its initial intent. "We want to make sure the money is going to the neediest."Kurt Ribisl, a professor in the UNC School of Public Health and a tobacco issues expert, said expanding the program would promote health through measures beyond increased health insurance coverage. He said the increased cigarette tax would lower smoking rates.

"It’s extremely clear-cut that when you raise the prices of cigarettes you see a drop in consumption in both youth and adults," he said.Ribisl said worries about the state of the N.C. tobacco industry are overblown, pointing to the fact that most of tobacco companies’ profits come from overseas markets.

"This veto was a devastating blow for public health," he said.

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