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FOR IMMEDIATE RELEASE Tuesday, Oct. 13, 1998 Contact: HCFA Press Office (202) 690-6145
HHS Secretary Donna E. Shalala today announced approval of Nebraska's plan to expand its Children's Health Insurance Program (CHIP) to thousands more children over the next two years.
Nebraska's amendment broadens eligibility for its original CHIP program, which was approved in August. In the second phase of Nebraska's "Kids Connection," state officials estimate they will insure over 16,000 children by October 2000.
The funds are available 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. Nebraska, like all states with CHIP plans, will receive federal matching funds only for actual expenditures to insure children.
"It is gratifying to see so many states take 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. Nebraska has chosen to expand Medicaid. HHS must approve each state's plan before CHIP funds become available.
HHS has approved 42 CHIP plans since CHIP funds became available last October. Together, these plans anticipate providing health insurance coverage for more than 2.3 million currently uninsured children within the next three years.
This second phase of Nebraska's CHIP plan, "Kids Connection," will expand Medicaid eligibility for children under age 19 in families with incomes up to 185 percent of the federal poverty level (the federal poverty level for a family of four is $16,450). The benefit package will be the same as for others enrolled in the Medicaid program.
There will be no cost to families. The amendment builds on Nebraska's original plan which expanded Medicaid eligibility for kids age 15 through 18 in families with incomes up to 100 percent of poverty. Prior to the CHIP program, children in that age group could only be covered if their family income was between 33 percent to 58 percent of poverty. The first phase alone was expected to cover nearly 1000 children by July 1, 1999.
"The success of the CHIP program has shown an inspiring amount of cooperation between the federal government and the states," said Nancy-Ann DeParle, administrator of the Health Care Financing Administration (HCFA), which administers CHIP, Medicaid and Medicare. "It is through those efforts that we will 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 42 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, Montana, New Hampshire, West Virginia, Virgin Islands, District of Columbia, Arizona and North Dakota -- these states have submitted plans: Tennessee, New Mexico, Kentucky, Virginia, Mississippi, Louisiana and Alaska.
Note: HHS press releases are available on the World Wide Web at: www.hhs.gov.