Just be sure you understand that he signed an extension of the original program, not an expansion of the program.  This means the same people that qualified previously still get coverage, along with anyone that qualifies under the existing standards.

Anyone that would have been covered by the proposed expansion of the program (which was supposed to get paid for by Tobacco taxes at last check...) remains uncovered as they were before.

pshaw - illegal immigrants don't qualify for Schip anyway. 

Neither do inmates and other criminals.  What is your point?

Break a law and qualify for a handout?

If the administrators follow the rules/laws, that might be the case... but since many don't, and they continue to hand out benefits to people without doing proper checks on citizenship, then I would argue that it's still an incentive along with other benefits (public school education for children among them) that are supposed to be given to citizens but wind up going to everyone that happens to reside in any given area.

So I continue to hold that SCHIP, like many other things, would be providing incentive for people to flood across the border and come enjoy the benefits.