U.S. Department of Health & Human Services
Improving the health, safety, and well-being of America	Frequent Questions Search

Font Size     Print     Download Reader

This is an archive page. The links are no longer being updated.

"With this new flexibility for states, we hope millions more children will gain access to needed health care services," HHS Secretary Tommy G. Thompson said. "SCHIP is an important program in the lives of children and their families. It has the potential to help working families who can't afford basic health care coverage for their children."

The SCHIP program covers more than 3 million children who would otherwise not have health insurance. Created by Congress in August 1997, the program is a federal-state partnership that provides health insurance for America's low-income, uninsured children. The law pledges $40 billion in federal funds over 10 years to help states find, enroll and insure children whose families earn too much to be eligible for traditional Medicaid, but not enough to afford private insurance plans.

The regulation issued today amends some of the requirements that would have been imposed on states under a version published Jan. 11, 2001. HHS delayed the effective date of the rule to review its provisions and make appropriate changes, which are included in the new version.

The changes promote greater state flexibility in order to encourage states to develop approaches that address the needs of children and families in their states. The changes also make it easier for states to use a common application form and enrollment process for their SCHIP and Medicaid programs - an approach that can be effective at expanding outreach to eligible families.

For instance, the amended rule gives states the option of requiring social security numbers for SCHIP applicants as they must do for Medicaid applicants. The January regulation would have prohibited states from using that information for SCHIP, making it more difficult to use common application forms and enrollment policies in the two programs.

The amended SCHIP regulation codifies the policies and practices that the federal government has developed in partnership with states. It implements the statutory requirements for the program, while preserving flexibility to allow states to design the most appropriate program to meet local needs.

Specific areas addressed in the regulation include:

• How to determine if a child is eligible for SCHIP;
• How children must be screened/enrolled in Medicaid, if eligible;
• How limits are set on out-of-pocket costs for SCHIP families; and,
• How a benefits package can be designed to qualify as "Secretary approved coverage."

HHS has approved SCHIP plans for all 50 states, 5 U.S. territories, and the District of Columbia. The department continues to provide technical assistance to the states and work with states, business and community leaders, and nonprofit organizations on outreach efforts to enroll more children in both SCHIP and Medicaid.

The changes will be published as an interim final rule in the June 25 Federal Register with a 30-day public comment period. The regulation will take effect on Aug. 24.

The Centers for Medicare & Medicaid Services (CMS), formerly known as the Health Care Financing Administration, is the federal agency that administers the SCHIP program in partnership with states and the Health Resources and Services Administration.

"This rule represents our best efforts, in cooperation with states, to develop policies that will continue SCHIP's success," CMS Administrator Tom Scully said. "It represents a trustworthy blueprint for the states as they continue strengthening and expanding their SCHIP programs."

"We are proud to be part of this collaboration with states to continue to help hard-working, low-income parents have access to health insurance so their kids can grow up strong and healthy," HRSA Acting Administrator Elizabeth M. Duke said.

###