GOVERNOR REACTS TO GOVERNMENT ACCOUNTING OFFICE LEGAL OPINION ON SCHIP PROGRAM

TRENTON - Governor Jon S. Corzine today reacted to the legal opinion rendered by the Government Accounting Office with regard to the Bush Administration's actions to curb the State Children's Health Insurance Program (SCHIP).

"This legal opinion strongly supports the premise of our lawsuit and rebukes the Bush Administration for its efforts to circumvent the public rule-making process to impose unreasonable and harsh restraints on state insurance health programs for the most vulnerable," said Governor Corzine. "Our FamilyCare program has been a bipartisan success. I call on President Bush to rescind this unlawful directive now so that we may continue the important task of protecting New Jersey's most precious resource, our children."

In the opinion, the GAO stated "The August 17 letter from CMS to state health officials is a statement of general applicability and future effect designed to implement, interpret or prescribe law or policy with regard to the SCHIP program. Accordingly, it is a rule under the Congressional Review Act." It goes on to further comment that "the SCHIP directive violates the Congressional Review Act because it makes significant changes to present and future policies without being subject to public comment or Congress."

The August 17, 2007 directive from the Bush Administration informed states they would no longer receive reimbursements for children in families over 250 percent of the federal poverty level unless they meet onerous and unattainable conditions. New Jersey has one of the most aggressive enrollment programs in the country and, having secured multiple waivers from the federal government, currently covers children in families up to 350 percent of poverty. If the directive were to take effect, 10,700 New Jersey children would be impacted immediately and 15,000 - 20,000 more who are currently eligible would be turned away.

In October 2007 Governor Corzine filed a lawsuit on behalf of the people of New Jersey challenging the letter issued by the Bush Administration. The lawsuit accused the Bush Administration of circumventing the public rule-making process by fundamentally and arbitrarily changing the program via letter, which would have the effect of denying health insurance coverage for over 10,000 New Jersey children.

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Photos from Governor Corzine's public events are available in the Governor's Newsroom section on the State of New Jersey web page.