White House threatens to veto children's health insurance legislation

Washington The Bush administration says senior advisers would recommend the president veto Senate legislation that would substantially increase funds for children's health insurance.

The legislation calls for a 61-cent increase in the federal tax on a pack of cigarettes. The money would be used to subsidize health insurance for children whose family incomes are too high to qualify for Medicaid but not enough to afford insurance on their own.

Members of the Senate Finance Committee brokered an agreement Friday that would add 35 (b) billion dollars to the program over the next five years. The Bush administration had recommended five (b) billion dollars.

White House spokesman Tony Fratto says the Senate Legislation would encourage many to drop private insurance coverage and sign up for the government-subsidized program.

Montana Senator Max Baucus is chairman of the Senate Finance Committee. He says the Senate proposal would lead to more than three (m) million uninsured children obtaining health coverage.

Others say that estimate is high.

By AP Writer Kevin Freking (Copyright 2007 by The Associated Press. All Rights Reserved.) APNP 07-15-07 1158CDT | save this article / add to your favorites list