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Seniors' group: SCHIP bill will benefit Medicare recipients

A senior citizens group says contrary to what Medicare Advantage companies claim, a bill to expand the State Children's Health Insurance Program (SCHIP) is highly beneficial to seniors.

Senate Bill 1224, which is being pushed by House Democrats, calls for a $50 billion increase in SCHIP funding over the next five years. SCHIP covers children whose families earn too much to qualify for Medicaid, but not enough to afford private health insurance.

Some critics of the legislation argue it would adversely affect elderly and disabled Americans currently enrolled in private health plans through Medicare. The plans often charge lower premiums than what is available through traditional Medicare, or they offer extra benefits.

The Congressional Budget Office estimates that if the SCHIP bill becomes law, about 2.7 million seniors will no longer be taking part in the private plans. Medicare Advantage companies are also threatening to stop providing service in certain states, particularly in rural areas, if the bill is signed into law. However, Brad Phillips, a spokesman for the TREA Senior Citizens League, says those Medicare Advantage companies are trying to scare seniors into thinking they will lose their health insurance.

"Over the weekend we really saw a lot of these Medicare Advantage Plans really ramping up their [public relations] wings trying to scare seniors and say 'no longer will you be able to register or be part of our Medicare advantage plans.' Well, the truth is those Medicare Advantage Plans have been operating at an expense of 19 percent higher than more traditional Medicare funds," says Phillips.

According to Phillips, the bill would actually increase senior benefits. He says that under the new bill, seniors would see a lowering of costs anywhere from 20 to 50 percent for treatment of depression or other mental illnesses. Low-income seniors would also qualify for extra help in paying for medicines or monthly premiums. "So when you look at the overall bill on balance, we believe this would be good for seniors," says Phillips.

An article in Medical News Today states that the funding for the majority of the $50 billion increase would come from a 45-cent hike on the cigarette tax.

President Bush and some Republican leaders argue the Democrats' proposed SCHIP expansion would be taking a step toward "government-run healthcare." Republicans have introduced their own version of the bill.