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HHS Secretary Donna E. Shalala today announced approval of Hawaii's proposal to expand health insurance coverage to uninsured children through the Children's Health Insurance Program (CHIP).

Hawaii's CHIP program will augment the state's comprehensive health insurance coverage system already underway through a statewide Medicaid demonstration approved by the Clinton administration on July 16, 1993. The demonstration program -- QUEST -- is attempting to provide universal coverage for state residents who are not covered under Hawaii's mandatory employer-sponsored insurance program.

Hawaii is the 50th state or territory to receive approval of its CHIP plan since the program's inception in October 1997. Together, these plans anticipate providing health insurance coverage for more than 2.5 million currently uninsured children within three years.

"It is gratifying to see so many states take advantage of this wonderful new program to help working parents obtain health insurance for their children," Secretary Shalala said. "The Clinton administration and the states are working together to give children the health care they need to live longer, healthier lives. That's good for all of us."

Hawaii could receive up to $9 million in new funds under the federal CHIP program, the historic, bipartisan legislation signed last year by President Clinton. Hawaii, like all states with CHIP plans, will receive federal matching funds only for actual expenditures to insure children. The CHIP law allocates $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.

CHIP 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 each state's plan before CHIP funds become available.

Hawaii will use its federal allotment to expand its existing Medicaid program to cover children between the ages of 1and 6 in families with incomes up to 185 percent of the federal poverty level (the federal poverty level in Hawaii is $18,920 for a family of four). The state's current Medicaid program covers children in this age group in families with incomes of up to 133 percent of poverty. The state plans to submit amendments in the future to incrementally increase coverage to more children.

The benefit package will be the same as the state's Medicaid program benefit plan. There will be no out-of-pocket costs to families participating in the program.

The success of the CHIP program has shown an inspiring amount of cooperation between the federal government and the states," said Nancy-Ann DeParle, administrator of the Health Care Financing Administration, which administers CHIP, Medicaid and Medicare. "It is through those efforts 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 kids the same kind of high quality health care others take for granted," 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 CHIP. "Free or low-cost health insurance is what families need to ensure their kids can grow up strong and healthy."

For the first year of the program, allotments totaling $4.3 billion are available to states whose plans are approved by HHS by Sept. 30, 1999. CHIP plans have been approved in 50 states and U.S. territories. In order of their approval, they are: Alabama, Colorado, South Carolina, Florida, Ohio, California, Illinois, New York, Michigan, Missouri, New Jersey, Connecticut, Rhode Island, Oklahoma, Pennsylvania, Massachusetts, Wisconsin, Oregon, Texas, Idaho, Puerto Rico, Indiana, Utah, North Carolina, Minnesota, Maryland, Arkansas, Nebraska, Maine, Nevada, South Dakota, Iowa, Kansas, Delaware, Georgia, Montana, New Hampshire, West Virginia, Virgin Islands, the District of Columbia, Arizona, North Dakota, Louisiana, Virginia, Mississippi, Kentucky, Alaska, Vermont, New Mexico and Hawaii. HCFA is also reviewing plans from Tennessee, Guam and American Samoa.

Note: HHS press releases are available on the World Wide Web at: www.hhs.gov.