TRENTON - Governor Jon S. Corzine today filed a lawsuit on behalf of the people of the state of New Jersey challenging the letter issued by the Bush Administration limiting eligibility for the State Children’s Health Insurance Program (SCHIP). The lawsuit accuses 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.  

“SCHIP is an unqualified bipartisan success in New Jersey and in states across the nation, and the Bush Administration’s determination to pursue a course of action that will harm our children’s health is incomprehensible,” Governor Corzine said. “This same Administration previously signed off on our decision to cover the 10,000 kids they are now seeking to kick out of SCHIP, and the lawsuit we filed today demonstrates that we will simply not let that happen. Washington should be a partner to states that are trying to cover more children, not an opponent, and I urge the President to reverse course, withdraw the letter, and sign the bipartisan legislation before him.” 

In the August 17 letter, 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, including one as recently as last year from the Bush Administration, currently covers children in families up to 350 percent of poverty. If the directive were to take effect unchallenged, 10,000 New Jersey children would be impacted. 

"We will use every means at our disposal in court and in Congress to overturn President Bush's misguided and dangerous policy,” said Senator Frank Lautenberg. “The President is literally trying to take health insurance away from thousands of children in New Jersey and we can't let that happen." 

 The Administration’s directive also sought to impose unreasonable and harsh restraints on state programs, including a 1 year “crowd out provision” which would require children to wait an entire year without coverage before becoming eligible for SCHIP. Currently, New Jersey only requires that a child lack health insurance for 3 months.  

"In Congress and on the state level, we are standing up to the president's misguided plans to limit health coverage for children who have nowhere else to turn. This is a matter of values -- do we value our children and do our actions match our values? The administration's actions do not,” said Senator Bob Menendez. “As a senator who led 43 of my colleagues in urging the president to reconsider his uncompassionate attempt to cut kids off the program, I support and applaud Governor Corzine for filing suit to block the limits."

Governor Corzine previously informed the Bush Administration of his willingness to challenge the directive in a letter sent earlier this month; the President has since made clear his intention to veto bipartisan legislation which would reverse the directive and allow states the flexibility to further expand SCHIP.

“Because of SCHIP, many families are able to rest a little easier in knowing their children’s healthcare needs are being met through this critical program,” said Congressman Donald Payne.  “I stand with Governor Corzine in insisting that New Jersey residents be given the opportunity to keep this important health initiative.”

"All year, the Bush administration has resisted efforts to ensure more children have access to health insurance," Congressman Frank Pallone said. "In order to reach more eligible children, states need the flexibility to run their programs as they see fit. President Bush is seriously undermining that flexibility, and is threatening to veto bipartisan legislation that keeps such flexibility intact, which is why New Jersey has no other choice than to file this lawsuit."

 The filing of New Jersey’s lawsuit comes on the same day that seven other states announced they would pursue legal challenges to the Bush Administration’s directive. Those states are Arizona, California, Illinois, Maryland, New Hampshire, New York and Washington. ###