August 29, 2007 10:26AM 

# SCHIP’s Bad Bargain 

By [Michael F. Cannon](https://www.cato.org/people/michael-f-cannon) 

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According to a [cost estimate](http://www.cbo.gov/ftpdocs/85xx/doc8584/08-28-CHIP.pdf) released by the Congressional Budget Office last Friday, the Senate-passed legislation expanding the State Children’s Health Insurance Program would enroll an additional 6.1 million children in SCHIP and [Medicaid](https://www.cato.org/pub_display.php?pub_id=4049). However, 2.1 million would lose their private health insurance. So while the legislation would provide government-run health care to 6.1 million children, it would reduce the number of uninsured children by only 4 million.

That’s government efficiency for you: extending health insurance to two children for the price of three!

I’ll be discussing SCHIP at a [Capitol Hill Briefing](http://https://www.cato.org/event.php?eventid=4059) with [Patrick Fleenor](http://www.taxfoundation.org/staff/show/11.html) of the Tax Foundation on September 13 ([register now](https://www.cato.org/event.php?eventid=4059)) and in an upcoming [Cato Briefing Paper](https://www.cato.org/pub_display.php?pub_id=8676) to be released the same day.

##### Related Tags 

[General](https://www.cato.org/general), [Health Care](https://www.cato.org/health-care), [Tax and Budget Policy](https://www.cato.org/tax-budget-policy) 

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