Several states have announced proposals to provide health insurance to more of their residents, but the federal government is likely to restrict initiatives that involve increased federal spending, reports The New York Times. Many of the states’ healthcare reform programs include expansion of the State Children’s Health Insurance Program by raising the income threshold so more children are eligible for coverage. New York, for example, wants children whose families earn incomes up to 400% of the federal poverty level to be eligible for SCHIP coverage, and California is advocating for an income ceiling of 300%. Yet President Bush has said that SCHIP should cover only children with family incomes less than 200% of FPL. Some states are also proposing mandates for employers to provide health insurance for workers, a move that may run afoul of the federal Employee Retirement Income Security Act of 1974.
Besides the laws passed by Massachusetts and Vermont to provide near universal health coverage, six states have initiated programs to reduce the cost of health insurance for small businesses, Colorado and Delaware are requiring insurers to cover young adults, and the governor of Pennsylvania has proposed a plan that will fund expanded coverage by raising taxes, such as those on tobacco, according to the Times.
