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News Release

HHS APPROVES NEW JERSEY WAIVER TO EXPAND HEALTH COVERAGE FOR 12,000 RESIDENTS

HHS Secretary Tommy G. Thompson today announced the approval of a New Jersey waiver request to expand health insurance coverage to more than 12,000 parents whose children already receive coverage through Medicaid or the State Children's Health Insurance Program (SCHIP). The waiver was approved under the Bush Administration's Health Insurance Flexibility and Accountability (HIFA) Initiative that makes it easier for states to expand health coverage to reach uninsured residents.

"With this waiver, New Jersey will be able to expand health coverage to thousands of New Jersey residents who otherwise would be uninsured," Secretary Thompson said. "Despite tight budgets, we must continue to work with states such as New Jersey to help uninsured Americans. This waiver shows that we can and are doing more for those who otherwise would go without needed health care."

Under the waiver, New Jersey expects to add 12,000 adults who currently do not have insurance to NJ FamilyCare, the state's insurance program for pregnant women, children and families, which includes SCHIP. The coverage will be available to uninsured parents and relative caretakers of children in the Medicaid and SCHIP programs whose incomes are at or below 133 percent of the federal poverty level (FPL). The FPL is $8,860 for an individual.

"Even in tight economic times New Jersey is setting an example of how federal waivers can help them cut into the numbers of citizens with no health coverage," said Tom Scully, administrator of the Centers for Medicare & Medicaid Services (CMS), the federal agency overseeing the SCHIP and Medicaid programs. "This move will enhance the number of people with access to health care and reduce the amount of uncompensated care many state providers now are shouldering."

Secretary Thompson launched the HIFA initiative in 2001 to encourage states to expand access to health care coverage for low-income individuals through Medicaid and SCHIP demonstrations. The initiative gives states more flexibility to coordinate these companion programs and offers a simpler application for states that commit to reducing the number of people without health insurance. HIFA also encourages coordination between public and private coverage options for the uninsured.

As former governors, President Bush and Secretary Thompson have made it a priority to make it simpler and easier for governors to submit Medicaid and SCHIP waiver requests and to have those requests considered promptly. Since January 2001, HHS has approved waivers and plan amendments that have expanded eligibility for comprehensive coverage to more than 2.2 million people.

More information about the HIFA initiative, including an online template that states can use to submit applications, is available at http://www.cms.gov/media/.

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Note: All HHS press releases, fact sheets and other press materials are available at http://www.hhs.gov/news.

Last Revised: January 31, 2003