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Tennessee could receive over $66 million in new funds under the federal CHIP program--the historic, bipartisan legislation signed into law by President Clinton in 1997. The CHIP law appropriates $24 billion over the first five years of the program to help states and U.S. territories expand health insurance to children whose families earn too much for traditional Medicaid, yet not enough to afford private health insurance. Like all states with CHIP plans, Tennessee will receive federal matching funds only for actual expenditures to insure children.

Tennessee's CHIP plan is the 54th to be approved. Together, these plans anticipate providing health insurance to more than 2.6 million currently uninsured children over three years.

"The Clinton Administration and the states are working together to give children the health care they need to live longer, healthier lives," said Secretary Shalala. "It's a pleasure to approve Tennessee's CHIP plan. Access to health insurance is what families need to ensure their kids can grow up strong and healthy."

CHIP gives states and U.S. territories three options for devising a plan to cover uninsured children: design a new children's health insurance program; expand current Medicaid programs; or a combination of both strategies. HHS must approve each plan before CHIP funds become available.

Tennessee opted to use its CHIP allocation to expand its Medicaid program to children born before Oct. 1, 1983, who are under age 19 in families with incomes at or below 100 percent of the federal poverty level and who could not have been enrolled under the operating rules for the state's Medicaid demonstration program before April 1, 1997. The federal poverty level is $16,700 for a family of four. The state expects to cover nearly 10,000 children by September 1999 under its CHIP program. The full Medicaid package of benefits will be offered and there will be no family cost-sharing.

"States are making remarkable progress in reducing the number of uninsured children in this country," said Michael Hash, deputy administrator of the Health Care Financing Administration which administers CHIP, Medicare and Medicaid. "Approval of Tennessee's plan brings us closer to our goal of providing free or low-cost health insurance to every child who needs it."

"We're pulling together to help hard-working, low-income parents give their children 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.

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 54 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, Tennessee, Texas, Utah, Vermont, Virginia, Virgin Islands, Wisconsin, and West Virginia.

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