Bush vetoes latest version of children’s health care plan

WASHINGTON (Dow Jones)–U.S. President George W. Bush vetoed children’s health legislation Wednesday, the second time he has rejected expanding a popular state insurance program. In a letter to the House of Representatives, Bush said he is ready to work with lawmakers to reauthorize the State Children’s Health Insurance Program, or SCHIP, but couldn’t sign the bill because it would boost the government’s role in health care and shift the program to cover more people in the middle class.

“Ultimately, our nation’s goal should be to move children who have no health insurance to private coverage – not to move children who already have private health insurance to government coverage,” Bush said.

He called for Congress extend funding under the current SCHIP while negotiations continue on a long-term reauthorization.

In addition to its view that the SCHIP bill doesn’t focus on eligible, but non-participating, poor children, the White House opposes a tobacco tax increase contained in the legislation.

The measure, backed by Democrats and Senate Republicans, would expand SCHIP by around $35 billion over five years.

The continuing resolution under which SCHIP is currently running expires Friday. If lawmakers can’t craft a compromise, an extension of the program is likely for fiscal 2008.

Earlier Wednesday, White House spokeswoman Dana Perino accused lawmakers of not negotiating in earnest.

“If they wanted to get to the table in order to expand children’s health care, the president provided a way to do that,” she said. “Instead, they’ve gone down a path that they know the president won’t sign.”