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Castor Votes No On House Plan For Children’s Insurance

Posted Sep 26, 2007 by Billy House, Tribune Washington Bureau

Updated Sep 26, 2007 at 08:34 PM

Though she is one of Congress’ biggest advocates for expanding children’s health insurance, Tampa’s Democratic Rep. Kathy Castor was one of just eight Democrats Tuesday night to vote against such a measure.

The proposed $35 billion, five-year expansion of the State Children’s Health Insurance Program (SCHIP) was still passed, 265 to 159.

The Senate is expected to take it up on Thursday.

But in a statement today, Castor described the two-house agreement reached with the Senate as “a poor substitute” for an earlier version of the bill she helped to pass in the House in August.

“Fewer children in America will be eligible for health insurance under the Senate package, Medicare overpayments to HMOs will continue, and bureaucratic barriers will remain,” said Castor.

Castor said the bill passed Tuesday night by her House colleagues “relies too heavily on cigar taxes” in place of overpayments to private health insurance companies.

She also said an earlier House bill used a formula that was more favorable to Florida because it was based upon per capita health care growth factors and child population growth factors. 

She says the new version has a formula championed by the Senate that bases the allotment on previous state enrollment and expenditures – where she says Florida has done poorly.

“Millions of dollars are at stake for Florida if the Senate funding formula is set in stone,” Castor said.

Castor said the original House bill she supported also would have reinvested of millions of dollars into health care that private companies serving some Medicare patients “have taken out inappropriately for massive profits.”

But under the bill passed Tuesday night, she said the Senate’s proposal does not do that, and relies too heavily on money to be raised by nearly tripling the tax on cigars.

Castor fought to minimize such an increase in the original House bill, and managed to get her House colleagues to agree to raising the current 5-cent-a-cigar tax to 33 percent of the manufacturing costs, with a $1 cap per cigar.

But the final bill worked out with the Senate and passed by the House on Tuesday would instead increase the tax to 52.9 percent of the manufacturers cost, with a $3 cap.

Castor may not admit it she is hoping for it, but there is still a chance the bill could be scuttled.

The White House has said President Bush will veto the bill – not for the shortcomings she suggests—but because its price-tag is too high.