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Northern Mariana Islands' CHIP plan is the 53rd to be approved and will expand coverage to an estimated 1,760 children by September 2000. Together, these state and U.S. territorial plans anticipate providing health insurance coverage for more than 2.5 million currently uninsured children by the end of 2000.

The Northern Mariana Islands could receive $118,000 in federal funds under the federal CHIP program -- the historic, bipartisan legislation signed in 1997 by President Bill Clinton. 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. The Northern Mariana Islands -- like all states and territories -- will receive reimbursement only for actual expenditures on insuring children.

"By providing children with health insurance, we are giving them a real head start on a healthy life," Secretary Shalala said. "Working together, the Clinton Administration and the states and U.S. territories are making remarkable progress in reducing the number of uninsured children in this country."

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.

The Northern Mariana Islands will use the CHIP allocation to expand Medicaid for children under age 19 who are currently receiving services through a territory-funded program. The local government will not expand income limits, but instead expand the number of children served.

Under current law, the calculation of CHIP funds for U.S. territories is separate than that used for states, resulting in a lower federal subsidy than is given to states. In order to provide more equitable funding for children's health insurance in U.S. territories, the President's fiscal year 2000 budget request asks Congress for an additional $34 million in additional CHIP funds available in fiscal year 2000 to further aid Northern Mariana Islands, American Samoa, Guam, Puerto Rico and the Virgin Islands in providing care to uninsured children.

The regular Medicaid benefits package will be provided and there will be no cost to the families participating in the program.

"The approval of the CHIP plan for the Northern Mariana Islands is another important step in getting health care to children in need," said Michael Hash, deputy administrator of the Health Care Financing Administration, which administers CHIP, Medicaid and Medicare. "It is gratifying to add another territory to this worthwhile program and to see more children receiving the insurance they need to help maintain healthy childhoods."

"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 (HRSA), the agency working with HCFA, states, and territories 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 52 other U.S. states and territories, including: Alabama, Alaska, Arkansas, American Samoa, Arizona, California, Colorado, Commonwealth of Northern Mariana Islands, Connecticut, District of Columbia, Delaware, Florida, Georgia, Guam, Hawaii, Iowa, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Maine, Massachusetts, Maryland, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, South Dakota, Texas, Utah, Vermont, Virginia, Virgin Islands, Wisconsin, and West Virginia.

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