SCHIP Gets Support From Small Business Organization

The National Federation of Independent Business, one of the largest small-business advocacy groups, is part of the coalition of organizations pushing for more spending on the State Children's Health Insurance Program, the Hill reports.

SCHIP gives money to states to pay for the health insurance of families with children that do not qualify for Medicaid but have modest incomes. The issue of whether or not it should be expanded has been one of the most partisan in the past year or so.

It's not immediately clear to me why this is a small-business issue. In fact, one health reform that would be good for small businesses might actually make SCHIP less relevant. Loosening regulations on state health insurance markets--which prevent people from shopping around the country for insurance plans--could reduce the cost of health insurance. That means that fewer families with children would find health care unaffordable.