View source for SCHIP Anti-Crowd-Out Act Exposed

The '''[[:media:5V9-SCHIP_Anti-Crowd-Out_Act_Exposed.pdf|SCHIP Anti-Crowd-Out Act]]''' was adopted by ALEC's [https://www.sourcewatch.org/index.php/ALEC_Health_and_Human_Services_Task_Force Health and Human Services Task Force] at the Spring Task Force Summit on May 17, 2008, and approved by the ALEC Board of Directors in June, 2008. According to ALEC.org, the Act was re-approved by the Board of Directors on January 9, 2014. (Accessed on 7/14/2015).

==CMD's Bill Summary==

This bill reads like it must have been written by the insurance industry, which worries that [https://www.sourcewatch.org/index.php/State_Children%27s_Health_Insurance_Program_(SCHIP)_(U.S.) SCHIP] will take away paying customers. This would be a dream come true for insurers because of premium subsidies.

==ALEC Bill Text==

<u>Section 1.</u> {Short Title} This Act shall be known as the “SCHIP Anti-Crowd-Out Act.”

<u>Section 2.</u> {Requirement Regarding Employer-Sponsored Coverage} 

Subject to this Section, no payment may be made under the State Children’s Health Insurance Program (SCHIP) with respect to an individual who is eligible for coverage under a group health plan or health insurance coverage offered through an employer, either as an individual or as part of family coverage.

<u>Section 3.</u> {Option to Offer Premium Assistance for High-Cost Plans}

A. In the case of an individual who is otherwise eligible for coverage under SCHIP but for the application of Section 2, and who has access to high-cost health insurance coverage, the [insert state] will offer a premium assistance subsidy for such coverage.

B. The amount of a premium assistance subsidy under this Section shall be the lesser of:

:1.An amount equal to the value of SCHIP coverage that would otherwise apply with respect to the individual or family but for the application of Section 2; or

:2. An amount equal to the difference between:

::a. The amount of the employee’s share of the premium for the high-cost health insurance coverage for the individual or family; and

::b. An amount equal to [insert percentage] of the total premium amount which includes both the employer and employee share.

<u>Section 4.</u> {Definitions} As used in this Act, the following definition applies:

A. “High-cost health insurance coverage” means a group health plan or health insurance coverage offered through an employer in which the employee is required to pay more than 20 percent of the total premium cost.

<u>Section 5.</u> {Severability Clause}

<u>Section 6.</u> {Repealer Clause}

<u>Section 7.</u> {Effective Date}

Adopted by the Health and Human Services Task Force at the Spring Task Force Summit, May 17, 2008. 

Approved by the ALEC Board of Directors June 2008.