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The three states gaining waiver approval today, New Jersey, Rhode Island and Wisconsin, will now be able to receive an enhanced federal match to cover low-income families with children whose incomes exceed traditional Medicaid levels, yet are not enough to afford private coverage. Additionally, New Jersey's and Rhode Island's demonstration projects will expand coverage to pregnant women.

"The SCHIP program is without doubt one of the proudest achievements of the Clinton Administration," said HHS Secretary Donna E. Shalala. "We now have over 3.3 million children covered -- extending this help to their parents is a natural progression of this program. These are working families that have played by the rules and still can't afford basic health coverage. Nothing has been more gratifying during my term as Secretary than overseeing a program that ensures access to health care for children and their families."

SCHIP is historic, bipartisan legislation signed in 1997 by President Clinton. The SCHIP law appropriates $24 billion over five years to help states expand health coverage to children whose families earn too much for traditional Medicaid, yet not enough to afford private health insurance. The SCHIP program is the largest expansion of health insurance coverage to children since the enactment of Medicaid in 1965 and, like Medicaid, is a partnership between federal and state governments.

Last summer, HHS issued guidance regarding SCHIP waivers based on the experience gained by the federal government and states in operating the new program and states' evaluations of their programs. This guidance indicates that while SCHIP funding is not designed to be sufficient to cover populations in addition to children, the department will consider demonstration proposals to extend coverage to low-income parents, as long as the proposal is within the parameters of the SCHIP law and available funds.

The waivers approved today include:

• New Jersey. The state will enroll the parents of children who are eligible for Medicaid and SCHIP and have family incomes up to 200 percent of the federal poverty level (FPL). The FPL for a family of four in 2000 was $17,050. In addition, the state will cover pregnant women with incomes between 185 and 200 percent of the FPL. Services will be provided through the state's NJ KidCare program.

• Rhode Island. The state will enroll parents with incomes between 100 and 185 percent of the FPL and pregnant women with incomes between 185 and 250 percent of the FPL. Both groups will receive care under the state's existing RiteCare program.

• Wisconsin. The state will enroll parents with incomes between 100 and 185 percent of the FPL. They will receive care under the state's existing BadgerCare program and will receive the Medicaid benefit package.

"Enrolling parents improves the chance of enrolling children," said Timothy M. Westmoreland, director of HCFA's Center for Medicaid and State Operations. "These three states have done a good job of enrolling children. We hope that these waivers will help them do even better."

"We're proud to support state innovation and flexibility through these waivers," said Claude Earl Fox, M.D., M.P.H., administrator of the Health Resources and Services Administration, the agency working with HCFA and states to implement SCHIP. "Coverage for parents will bring more eligible children into SCHIP so they can get quality health care."

HHS has approved SCHIP plans for all 50 states, five U.S. territories and the District of Columbia and has approved 71 amendments to these plans.

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