News Release

HHS Approves California Plan
to Improve Services for 73,000 Children in Rural Areas

HHS Secretary Tommy G. Thompson today approved California's plan to provide access to health care services to 73,000 medically underserved and uninsured children in rural areas of the state through the State Children's Health Insurance Program (SCHIP).

California will use SCHIP funds, together with other state revenues, to extend clinic hours in rural areas, pay the costs of mobile health and dental service vans, provide health screenings, nutritional counseling, telemedicine and other services. The rural health demonstration projects will be targeted to children under age 19 who may not otherwise have access to services.

"California is using the flexibility in the SCHIP law to meet the diverse service needs of California's most vulnerable children," Secretary Thompson said. "This initiative will improve the lives of children living in rural areas who otherwise might not receive critical health services."

The projects will be funded through a SCHIP health services initiative, which allows states to use money available for SCHIP administrative expenses to improve the health of low-income children -- including some who would not otherwise be eligible to receive SCHIP benefits.

HHS approved a similar project in 1999 that allowed California to develop and enhance existing health care delivery networks to provide supplemental rural health services. The state last year ended the program due to budget concerns, but, with today's approval, will be able to revive and expand it to additional low-income children.

"We encourage states to use this option to further protect public health and improve the delivery of public health services," said Dennis Smith, acting administrator of HHS' Centers for Medicare & Medicaid Services (CMS), the federal agency that oversees the SCHIP program.

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Last Revised: March 12, 2004