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HHS Secretary Tommy G. Thompson has approved a proposal by Minnesota to expand its State Children's Health Insurance Program (SCHIP) and Medicaid under a waiver that will allow parents and caretaker relatives to be enrolled in the programs.

The approval will allow the state to receive an enhanced federal matching rate for uninsured parents and relative caretakers of Medicaid and SCHIP eligible children with family incomes between 100 and 200 percent of the federal poverty level. The FPL for a family of four is $17,650 per year.

Over 27,000 otherwise uninsured parents will have access to health insurance under the new plan by 2002, the state says.

"I am thrilled today to extend the promise of health care insurance to parents," Thompson said. "We know there is a greater likelihood that kids will stay insured if their parents also have coverage."

Minnesota is eligible to receive over $37 million in its federal SCHIP allotment for fiscal 2001. SCHIP is historic, bipartisan legislation enacted in 1997. The SCHIP law appropriates $40 billion over 10 years to help states expand health insurance to children whose families earn too much for traditional Medicaid, yet not enough to afford private insurance.

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.

SCHIP plans have been approved for all states and territories.

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