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FOR IMMEDIATE RELEASE
Wednesday, Sept. 8, 1999
Contact: HCFA Press Office
(202) 690-6145

CHIP PROGRAM NOW APPROVED IN
ALL STATES AND U.S. TERRITORIES


HHS Secretary Donna E. Shalala today announced the approval of Wyoming and Washington state's plans to provide health coverage for uninsured children through the Children's Health Insurance Program (CHIP), completing approval of the program in all 56 states and territories in the country.

Wyoming and Washington are the final two CHIP plans to be approved. Wyoming could receive over $7 million and Washington could receive over $46 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, Wyoming and Washington will receive federal matching funds only for actual expenditures to insure children.

Together, all approved plans anticipate providing health insurance to more than 2.6 million currently uninsured children by September 2000.

"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 these final two CHIP plans and to see this program successfully in operation all across the country. States are making progress in reducing the number of uninsured children in this country. We will continue to work with the states so that all children have access to the basic health care they need."

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.

Wyoming's current Medicaid program covers children under age 6 in families with incomes up to 133 percent of the federal poverty level (FPL) and from age 6 through 15 in families with incomes up to 100 percent FPL. Wyoming will use its CHIP allocation to create a separate state CHIP program to cover children age 6-19 in families with incomes at or below 133 percent FPL. The federal poverty level is $16,450 for a family of four. The state expects to insure over 700 children by September 2000 under its CHIP program. The full Medicaid package of benefits will be offered and there will be no family cost-sharing.

Washington's current Medicaid program provides coverage to pregnant women with incomes at or below 185 percent FPL, and children below age 19 at 200 percent FPL. Washington will use its CHIP allocation to create a separate state CHIP program to cover uninsured children under age 19 in families with incomes between 200 and 250 percent FPL. The state expects to insure 3,700 children by July 2000, under its CHIP program. With full implementation by the year 2002, the state expects to be providing health insurance coverage to over 10,000 children. The full Medicaid package of benefits will be offered.

Washington will charge $10 per month per child enrolled in CHIP, with a family maximum of $30 per month. Cost sharing will include $5 copayments for physician services and prescription drugs. An emergency room copayment of $25 will be required for each visit that does not result in an inpatient admission. The state will impose a cap on family spending of $300 per child per year or a $900 family maximum cap.

"It is gratifying to approve these final two CHIP plans," said Michael Hash, deputy administrator of the Health Care Financing Administration, which administers CHIP, Medicaid and Medicare. "Approval of these final state plans means that every uninsured child in America who needs it, now has a new opportunity to receive free or low-cost health insurance."

"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. "Access to health insurance is what families need to ensure their kids can grow up strong and healthy."

This year, 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 all 56 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, Washington, Wisconsin, Wyoming and West Virginia.

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