North Dakotans who have incomes twice as high as federal poverty guidelines should be eligible for government health insurance for their children, the Democratic candidate for insurance commissioner says.

Jasper Schneider, who is a state representative from Fargo, said Tuesday that the change would add 3,300 children to the Children’s Health Insurance Program, which is financed by the state and federal government. North Dakota’s share comes to about 25 percent.

Schneider estimated the expansion would cost North Dakota taxpayers about $3 million, which he said was easy to justify given a state budget surplus that is expected to exceed $700 million by June 2009.

“As much as we love to brag about our huge surplus, in my mind it is almost irresponsible government,” Schneider said. “It’s the taxpayers’ dollars, and it’s not doing anybody any good to leave that money sitting in Bismarck, while at the same time we’re turning down 3,300 kids and their families, and saying, ‘Sorry, we can’t help.’ We can do better than that.”

In June, there were 4,119 children enrolled in the program, the Department of Human Services said. It offers coverage for immunizations, dental work, eye exams, health checkups and prescription medications, among other services.

Schneider is running against Republican Adam Hamm for North Dakota insurance commissioner. Hamm is seeking his first elected term after he was appointed last year to succeed Jim Poolman, who resigned.

Hamm said Monday that he supported making more children eligible for the program, but said the state’s initial focus should be on making sure children who are already eligible are getting health coverage. Low-income families who have children 18 years old are younger may qualify.

“To me, there can be a healthy and vigorous debate … about what is a reasonable expansion of the program, but I think all parties can agree that we need to immediately focus on trying to get as many kids that are currently eligible signed up,” Hamm said.

The program’s income limits are pegged to federal poverty guidelines. At present, families with incomes up to 140 percent of the federal poverty level may be eligible to have their children insured.

That percentage is rising to 150 percent on Oct. 1. Some expenses, including Social Security, Medicare and state income and federal tax withholdings, are not counted toward the limit.

Schneider’s proposal would make families with children eligible for coverage if their incomes were 200 percent or less of the federal poverty level.

Under Schneider’s terms, a family of four would be eligible for government insurance coverage for children if the family’s income was $42,400 or less, a 43 percent increase from the current limit of $29,676.

The ceiling would rise to $49,600 for a family of five, and $56,800 for a family of six. The current limits are $34,716 and $39,756.

Schneider said his proposed North Dakota expansion of children’s health insurance eligibility will depend on whether the federal government continues state subsidies of the program, which are now scheduled to end in March.

President Bush and Congress have been feuding about proposals to expand the Children’s Health Insurance Program. Last October, the president vetoed legislation that he said would have extended its benefits to middle-class families and encouraged them to drop private insurance coverage.

Maggie Anderson, the Medicaid director for the state Department of Human Services, said the state expects to spend $3.2 million on the Children’s Health Insurance Program during the next federal budget year, which begins Oct. 1. The federal government is expected to pay $9.2 million.

Schneider’s proposal also includes the establishment of an advisory board, headed by the state insurance commissioner, that would monitor the children’s insurance program and suggest ways to improve it and encourage enrollment.

The board would include two state legislators, representatives of North Dakota’s three members of Congress, a representative from Blue Cross Blue Shield of North Dakota, and two members of a nonprofit advocacy group, chosen by the insurance commissioner.

Blue Cross Blue Shield, which is based in Fargo, is North Dakota’s largest health insurance company.