The actual headline of Robert Pear’s article in today’s New York Times was, of course, "Rules may limit health program aiding children," referring to President Bush’s new rules limiting federal handouts to state children’s health insurance programs (SCHIP) that are expanding, willy-nilly, and capturing more kids (and adults, too). The problem is that when states increase eligibility for their programs, the federal Treasury picks up most of the tab – a recipe for a "death spiral" of government growth.

After a decade of such growth, SCHIP is set to expire on September 30. It might be a very good idea for President Bush to let it die. Before the summer recess, the Senate passed an SCHIP expansion bill (S.1893)costing $35 billion over five years and $71 billion over ten, by a veto proof 68 to 31 vote. The House bill (H.R. 3162) costs $28 billion over five years and $132 billion over ten, but passed by only 225 to 204.

President Bush dislikes both bills – but not enough. His 2008 budget proposes increasing SCHIP funding by only $5 billion for five years. Clearly, there is no way either chamber can get anywhere near the President’s goal. In fact, it’s more likely we’ll see the House majority reduce its figure towards $71 billion and stop when it’s pulled over enough votes to make it veto-proof, like the Senate’s.

So, why should the President waste time with this? Signal an end to SCHIP right now, and let Congressional Republicans explain why they want to make more kids dependent on government for health care.

SCHIP is not a “sacred trust," like so many Americans have deluded themselves into thinking Medicare and Social Security are. Ten years ago, SCHIP was simply one element of a complicated budget compromise between President Clinton and the Congressional Republican majority that sorted out government finances. The Dems got SCHIP, but the Republicans forced tax cuts and a 5-year plan to eliminate the deficit (see Alison Mitchell, "President and allies hail 'milestone'", New York Times, August 6, 1997).

So, there’s no reason for President Bush not to let SCHIP wither away: a symbolic attack on government dependency.

"Symbolic?" Yes. Despite all the sound and fury over SCHIP this summer, federal SCHIP spending will account for only one quarter of one percent of U.S. health care spending in 2007. The fact that so many interest groups are screaming bloody murder over any attempt to wrestle it under control is evidence of how those who earn a living from taxpayer handouts are addicted to every last penny. (In Mr. Pear’s article, the Deputy Commissioner of Human Services of New Jersey is “horrified” at the “havoc” the new administrative rule changes will cause.)

Federal SCHIP handouts don’t even do that much for kids. CBO "baseline" spending for 2007 is $5.7 billion on 7.4 million enrollees: $770, or a little over two bucks a day per person.

Veto SCHIP. Sure, governors will whine, but so what? How fortunate to be a term-limited, lame-duck President!