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The approval will allow the state to raise income eligibility for its Cub Care program from 185 percent of the federal poverty level, to 200 percent (the federal poverty level for 2001 is $17,650 for a family of four). The state expects to immediately enroll over 500 new children in Cub Care with this expansion. The state operates both a SCHIP Medicaid expansion program and a separate SCHIP program called Cub Care. This new group will bring the number of SCHIP children enrolled in the state to 10,029.

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

Maine is eligible to receive nearly $13.4 million in federal funds for fiscal year 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. Maine, like all states with SCHIP plans, will receive federal matching funds only for actual expenditures to insure children.

The 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 any amendment to a state's CHIP program.

Under the new Cub Care amendment, families with incomes between 185-200 percent of poverty will pay a premium of $20 per month for one child, with a monthly limit of $40 per month for two or more children. Under SCHIP law, a family's out-of-pocket costs cannot exceed five percent of that family's annual income.

"Maine's expansion demonstrates how popular this program is with states and how vital it has proven to be for the families enrolled," said Secretary Thompson. "Both states and the Bush administration are enthusiastic about this program to get access to health care to children."

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

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