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FOR IMMEDIATE RELEASE
Thursday, March 29, 2001 		Contact: HCFA Press Office
(202) 690-6145

HHS APPROVES CHANGES
IN COLORADO SCHIP PROGRAM

Health and Human Services Secretary Tommy G. Thompson has approved two changes in the Colorado State Children's Health Insurance Program (SCHIP) that will make the program available to more children who otherwise would not have coverage.

The approval will allow the state to eliminate monthly premiums in the program and substitute a nominal annual enrollment fee of $25 for one child or $35 for eligible families with two or more children whose income is between 151 percent and 185 percent of the federal poverty level (FPL). In 2001, the FPL is $17,650 for a family of four. The second change streamlines the state's application and enrollment process to make it easier for families to sign up for coverage. The state expects to cover 29,743 children this year.

Colorado is eligible to receive nearly $45 million in federal funds for fiscal 2001. SCHIP is historic, bipartisan legislation enacted in 1997. The SCHIP law appropriates $24 billion over five years to help states expand health insurance to children whose families earn too much for traditional Medicaid, yet not enough to afford private insurance. Colorado, like all states with SCHIP plans, will receive federal matching funds only for actual expenditures to insure children.

"The Bush administration will work closely with states to ensure flexibility at the local level to get health insurance to children who need it," said Thompson. "This is just an example of how the federal government can let states make decisions that make sense for them and their citizens."

SCHIP gives states three options for devising a plan to cover uninsured children: designing a new children's health insurance program; expanding Medicaid programs; or a combination of both strategies. HHS must approve amendments to a state's SCHIP program.

Colorado has created its own separate child health program. The program provides coverage to children from birth to age 18 with family incomes up to 185 percent of poverty.

"Colorado's efforts to streamline eligibility and make the program more affordable demonstrate how popular this program is with states and how vital it has proven to be for the families enrolled," said Thompson. "Both states and the Bush administration are enthusiastic about this program to get access to health care for children."

SCHIP plans have been approved for all the states and territories.

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Note: All HHS press releases, fact sheets and other press materials are available at www.hhs.gov/news.