Ron Interviews Senator Kay Bailey Hutchison

Children's Health Insurance Problem

August 29, 2004

Ron Interviews Senator Hutchison at the McAllen Country Club 08-25-04

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Ron interviewed Luisa Saenz, the Project Administrator for the Children's Defense Fund, and Stephanie Contreras, a mental health advocate, about the impact that has been seen on the health care for children in the Rio Grande Valley since cuts were made to the Children's Health Insurance Program (CHIP for Texas). United States Senior Senator for Texas, Kay Bailey Hutchison, told Ron that more should be done to address this issue by Governor Rick Perry and the Texas State Legislature, especially since she added an amendment to a bill redesignating $600 million for Texas to utilize for CHIP. Governor Perry's press secretary, Kathy Walt, responded in writing to the problem during this show. Reactions about restoration of CHIP funds were also shown from members of the Texas House Border & International Affairs Committee who met August 26, 2004, in Edinburg, Texas to hold a hearing on the health of the border region.

In response to Senator Hutchison's comments on CHIP funds availability for Texas, Governor Perry's press secretary provided these statements:

“Contrary to the senator’s statement, George W. Bush was, indeed, governor when the Children’s Health Insurance Program was implemented. It is astounding to me that Sen. Hutchison would attack Bush’s record on CHIP,” said Kathy Walt, press secretary to Gov. Rick Perry. “The fact of the matter is CHIP was created by the federal government in 1998, when Bush was governor of Texas.

“CHIP funds are made in the form of an allocation, with a new allocation becoming available each year. Each year's allocation is available for three years, but Congress has extended some of those funding periods, so that states could retain some of their unspent available funds.

“Texas was not able to spend much of its 1998 and 1999 allocations, because the separate Texas CHIP program started in May 2000, after the 1999 Legislature passed authorizing legislation and appropriations for the program. The federal government has allowed states that were unable to spend all of their initial funding allocation to carry forward a portion of those unspent dollars. That policy continues today.

“It is important to note that CHIP is a state/federal matching program, not a direct grant program. For the senator to say that the money does not come from state dollars is greatly misleading because the federal dollars must be matched by state expenditures.

“Last year, the legislature approved a major reorganization of the Texas Health and Human Services Commission to save hundreds of millions of dollars in administrative costs. Gov. Perry’s goal is to use those administrative cost savings instead to provide additional direct benefits, such as health services, to needy Texans. By spending state resources wisely, the state can draw down even more federal funds.

“Gov. Perry is glad to have the senior Senator representing Texas in Congress and hopes that in the future she will be successful in getting Texas its fair share of the gasoline taxes Texans pay – something that has not been accomplished for years. The billions of dollars in taxes Texas should be receiving would go a long way in addressing highway needs in the Rio Grande Valley and all across the state.”