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The House passed a bill earlier this month that would expand the State Children’s Health Insurance Program and the Senate is expected to pass a similar bill shortly. President Obama is expected to sign the reconciled bills into law. However, if the Obama team is really serious about having a public health insurance plan compete against private plans, here’s a way to try out that idea on children.

Currently there is a $1,000 tax credit for every child. Many Democrats would like to make it refundable (which means parents would get the money even if they owe no taxes). At the same time, many Republicans view SCHIP as a wasteful expenditure that crowds out private insurance. So here’s how to satisfy everyone in one fell swoop:

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