Bush, Dems draw battle lines over health care

By Donna Smith

WASHINGTON (Reuters) - President George W. Bush vowed on Thursday to veto a plan to expand health insurance for children in low-income families, drawing criticism from Democrats and some fellow Republicans and setting the stage for a major battle with Congress.

Democratic leaders in the Senate and House of Representatives are moving toward agreement on a bill that would increase funding for the State Children's Health Insurance Program by $35 billion and raise tobacco taxes to cover the cost. The federal tax on cigarettes would rise by 61 cents a pack to $1.

Congress is likely to vote on the bill next week.

Senate Majority Leader Harry Reid, a Nevada Democrat, accused Bush of "going back on his word" on a campaign promise to enroll millions of kids in the program.

House Speaker Nancy Pelosi, a California Democrat, said the bill enjoyed broad support from Republicans as well as state and local government officials, adding "the president is alone in his opposition to this legislation."

Democrats say more money is needed to help families and ensure that all eligible children get the health care they need. As many as 10 million children could get health coverage under the proposed legislation.

Bush at a news conference called the emerging bill "an incremental step toward the goal of government run health care for every American" and vowed to veto it.

Bush accused Democrats of playing politics with children's health care and said he has enough support to sustain his veto even though many of his own Republicans back the legislation.