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State officials expect this expansion of their SCHIP program to cover an additional 20,000 currently uninsured children. This new group is in addition to the 40,000 children who were enrolled in fiscal year 1999.

Illinois is eligible to receive over $121 million in funds for fiscal year 1999. 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 insurance to children whose families earn too much for traditional Medicaid, yet not enough to afford private health insurance. Illinois, like all states with SCHIP plans, will receive federal matching funds only for actual expenditures to insure children.

"The Clinton Administration and the states are working together to give children the health care they need to live longer, healthier lives," said Secretary Shalala. "It's a pleasure to approve the Illinois amendment and I look forward to more states expanding their programs in the future."

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

Illinois' initial SCHIP plan, a Medicaid expansion, was approved by Secretary Shalala on
April 1, 1998. The amendment approved today consists of a separate SCHIP program for children below age 19 in families with income levels between 133 percent and 185 percent of the federal poverty level (FPL). The current FPL for a family of four is $17,050.

For families with incomes above 133 percent of poverty, there will be some cost-sharing requirements. But, under the SCHIP law, family cost-sharing cannot exceed 5 percent of the family's income. There are also no cost-sharing requirements for American Indian/Alaskan Native children.

There will be no premiums charged to families whose income is below 150 percent of FPL. For families with incomes between 150 percent FPL and 185 percent FPL with one child, a monthly premium of $15 will be charged. For families in this income level with two children, $25 per month will be charged; and $30 per month will be charged for families with three or more children.

"Illinois' newly expanded program is a positive demonstration that SCHIP is working and that states are enthusiastic about this program," said Nancy-Ann DeParle, administrator of the Health Care Financing Administration (HCFA), which administers SCHIP, Medicaid and Medicare. "It is through efforts like this that we will realize the administration's goal of providing health insurance to those who need it."

"We're pulling together to help hard-working, low-income parents give their children the same kind of high quality health care that others take for granted," said Claude Earl Fox, M.D., M.P.H., administrator of the Health Resources and Services Administration (HRSA), the agency working with HCFA and states to implement SCHIP. "Free or low-cost health insurance is what families need to ensure their kids can grow up strong and healthy."

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

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