All Kids Health Insurance Coverage Act of 2006 - Amends title XXI (State Children's Health Insurance Program) (SCHIP) of the Social Security Act to provide eligibility of all uninsured children for SCHIP.
Provides for: (1) an increase in federal financial participation under SCHIP and Medicaid for states with simplified enrollment and renewal procedures for children; (2) a limitation on payments to states that have an enrollment cap but have not exhausted their available allotments; and (3) an additional enhancement to the federal medical assistance percentage (FMAP) to promote expansion of coverage to all uninsured children under Medicaid and SCHIP.
Amends the Internal Revenue Code to repeal the scheduled phaseout of the limitations on personal exemptions and itemized deductions.