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News Release

HHS Awards Nearly $30 Million to States to Offset Costs
of Insurance for Residents Too Sick for Conventional Coverage

HHS Secretary Tommy G. Thompson today announced awards of nearly $30 million in grants to 16 states that provide health insurance to residents who cannot get conventional health coverage because they are too sick.

The grants will be used by the states to offset losses that they incurred in the operation of high-risk pools, which are typically state-created non-profit associations that offers health coverage to individuals with serious medical conditions. Enrollment in these pools is growing, with more than 172,000 individuals enrolled in state pools.

"These grants will make it more affordable for states to expand access to health care through high-risk pools for the uninsured," Secretary Thompson said. "Individuals who benefit from these pools usually have a history of health problems that make it extremely difficult to find affordable health coverage in the individual market."

The grants were authorized in the Trade Adjustment Assistance Reform Act of 2002. To be eligible, a state must have a "qualified" high-risk pool that meets the criteria specified in the Trade Act and must follow such rules as capping premiums at no higher than 150 percent of the standard charge in the state. States were eligible for a grant that matches up to 50 percent of the losses incurred in the operation of the risk pools. Funds were distributed based on the number of uninsured individuals in each state. HHS' Center for Medicare & Medicaid Services (CMS) administers the program.

The 16 states that received grants are as follows: Alaska, $495,769; Arkansas, $1,764,129; Colorado, $2,945,322; Connecticut, $1,460,719; Illinois, $7,451,658; Indiana, $2,889,802; Iowa, $1,018,945; Kansas, $1,337,299; Kentucky, $2,297,008; Minnesota, $1,710,789; Mississippi, $1,890,350; Montana, $638,228; Nebraska, $719,841; New Hampshire, $224,559; North Dakota, $310,349; and Oklahoma, $2,681,597.

Today's grants are part of the Bush Administration's broad strategy for expanding access to health care for the more than 40 million Americans without health insurance. The President's fiscal year 2004 budget plan would expand community health centers that care for the uninsured, strengthen and modernize the Medicaid program, offer health tax credits to help individuals obtain insurance, and extend Medicaid and State Children's Health Insurance Program (SCHIP) coverage to more Americans who otherwise would go without coverage.

"Getting health insurance to the uninsured has been a high priority of the Bush Administration," Secretary Thompson said. "These new grants for high-risk pools will help get coverage to people who otherwise would not have access to health care."

Information about this new program and how states may apply for a grant are included in the interim final rule published May 2, 2003 in the Federal Register. More information about risk pools is available at www.cms.hhs.gov/riskpool. More information about the President's initiatives to help the uninsured is available at http://www.hhs.gov/news/press/2003pres/20030211.html.

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

Last Revised: December 17, 2003