Democrats draft revised health-care plan

WASHINGTON — House Democrats, convinced that President Bush blundered by vetoing an expansion of a children's health-care program, plan to approve a similar bill this week even as the administration offered new concessions Tuesday.

The Democrats' revised bill would reduce the number of adults and higher-income families potentially eligible for the health-insurance subsidies, presumably making it easier for Republicans to back it while saving face. But on the key issue of spending, Democrats say they will not budge from the original $35 billion price tag.

Bush had recommended a spending increase of $5 billion over the next five years in the State Children's Health Insurance Program (SCHIP), enough to cover children in families generally with incomes at twice the federal poverty level — $41,300 for a family of four.

Health and Human Services Secretary Mike Leavitt said Tuesday that the administration is now willing to support, with conditions, covering children in families at up to three times the federal poverty level — $61,950.

Leavitt would not say specifically how much more money the administration would recommend for SCHIP, but he acknowledged that an additional $15 billion increase was "a rational number."

House Majority Leader Steny Hoyer, D-Md., told reporters Tuesday that the Democrats' new bill would still expand the program from 6 million children now covered to 10 million. As for the proposed $35 billion increase, "you can't do the 10 million without that."

Democrats would still pay for the expanded program with a 61-cent increase — to $1 — in the federal excise tax on a pack of cigarettes.

Leavitt said Bush would continue to oppose that or any other tax increase. He also said states should have to assure that low-income children are covered first, before eligibility is expanded to cover more middle-income families.

The administration's overtures would become moot if Democrats picked up just seven more House members who last week supported Bush's veto.

House Democratic leaders decided to hasten action on the bill Tuesday after dozens of colleagues told them the issue is extremely popular in their districts and should not be allowed to cool down.

"There's a big sentiment in our caucus to do it right away," said Rep. Jim Clyburn of South Carolina, the Democratic whip.

Rep. David Price, D-N.C., said: "There's a sense that we have the high ground here, and we need to press ahead with it."

Republican negotiators, however, warned Hoyer that they may need several days to win over enough converts to the new bill.

Democrats said a revised bill could reach the House floor Thursday. Senate approval would come some time later, lawmakers said.

The children's health program is designed for families that make too much money to qualify for Medicaid, but not enough to buy medical insurance.