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FOR IMMEDIATE RELEASE September 11, 1998 Contact: HCFA Press Office (202) 690-6145
HHS Secretary Donna E. Shalala today announced approval of Montana's plan to expand health coverage for thousands of uninsured children through the Children's Health Insurance Program (CHIP).
Montana could receive as much as $9 million in new funds under the federal CHIP program -- the historic, bipartisan legislation signed last year by President Clinton. The CHIP law allocates $24 billion over the next 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.
Montana will use its CHIP funds to expand coverage to more than 9,000 children by June 2000 by creating a statewide children's health insurance program. Montana, like all states with CHIP plans - will receive federal matching funds only for actual expenditures on insuring children.
Montana is the 36th CHIP plan to be approved in the 12 months since CHIP funds have been available. Together, these 35 states and Puerto Rico anticipate providing health insurance coverage for more than two million currently uninsured children within the next three years.
"It is gratifying to see so many states taking 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."
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.
Montana will use its CHIP allocation to create a separate insurance program for children under age 19 whose families have incomes of less than 150 percent of poverty (the federal poverty level for a family of four is $16,450).
The benefits package will mirror the state employee health plan, including prescription drugs, emergency room services, and mental health and substance abuse treatment services. For families with incomes at or above 100 percent of poverty, the state will charge an annual enrollment fee of $12 for one and $15 for families with two or more children enrolled. Copayments for some services will be charged for families whose income is above 100 percent of poverty. Copayments will be capped at $200 per family per year.
"The success of the CHIP program will assure millions of children across the nation access to the kind of health care that is critical to a bright future," said Nancy-Ann DeParle, administrator of the Health Care Financing Administration (HCFA), which administers CHIP, Medicaid and Medicare. "The cooperation between the federal government and the states will help 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 (HRSA), 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. In addition to the 36 plans which have been approved -- 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, and Montana -- these states have submitted plans: Tennessee, Delaware, the District of Columbia, New Mexico, New Hampshire, Kentucky, Virginia, West Virginia, the Virgin Islands, North Dakota, Arizona, Mississippi, Louisiana and Alaska.
Note: HHS press releases are available on the World Wide Web at: www.hhs.gov.