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FOR IMMEDIATE RELEASE September 17, 1998 Contact: HCFA Press Office (202) 690-6145
HHS Secretary Donna E. Shalala today announced approval of the Virgin Islands' plan to provide health coverage for its uninsured children through the Children's Health Insurance Program (CHIP).
The Virgin Islands could receive $279,175 in new funds for FY 98 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. The Virgin Islands - like all states and territories - will receive reimbursement only for actual expenditures on insuring children.
The Virgin Islands' CHIP plan is the 39th to be approved in the year since CHIP funds have been available. Together, these plans 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 and territories 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 and territories 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.
The Virgin Islands will use its CHIP allocation to expand its Medicaid program to children receiving services through a territory-funded program. The CHIP funds will help strengthen federal support for children's health in the Virgin Islands. The local government will not expand eligibility limits. The current medically needy income level in the Virgin Islands for a family of four is $8,500 per year--or about half that of states.
The regular Medicaid benefits package will be provided and there will be no cost to the families participating in the program.
"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 these 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 39 plans that 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, the Virgin Islands, and the District of Columbia -- these states have submitted plans: Tennessee, New Mexico, Kentucky, Virginia, North Dakota, Arizona, Mississippi, Louisiana and Alaska.
Note: HHS press releases are available on the World Wide Web at: www.hhs.gov.