Family Making $56,000 Struggles With `Out of Sight' Health Cost

Sept. 25 (Bloomberg) -- Lori and Steven Siravo earn $56,000 a year and say they can't afford health insurance.

They consider themselves lucky to live in New Jersey, where the family's income isn't too high to qualify their 16-year-old daughter, Carlie, for U.S. government-subsidized coverage under the State Children's Health Insurance Program.

``It's one of the greatest things,'' said Lori, 48, a hairdresser who pays $74.50 a month for her daughter's benefits, less than a third of what she'd have to spend for private insurance. She and her husband, who works for a small construction company, don't have insurance. ``At least I can sleep a little better at night knowing Carlie has it.''

President George W. Bush says families making that much can afford private coverage and that the 10-year-old program should return to its purpose of ``helping poor children.'' His effort to stop middle-class families from obtaining benefits in states such as New Jersey is at the heart of a conflict with Congress over renewal of the health plan set to expire Sept. 30.

Bush has vowed to veto legislation the Democratic- controlled House is expected to vote on today that would more than double funding from $5 billion a year, cover about 3.4 million more children, and retain flexibility for states to enroll whoever they want. The Senate will take up the measure later this week.

The president wants to keep spending almost unchanged and make sure the money is directed at kids in households earning less than $34,340 a year for a family of three, twice the federal poverty level.