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State officials expect this expansion of their SCHIP program to cover nearly 5,300 children by September 2001.

Hawaii is eligible to receive over $10 million in funds for fiscal year 2000. SCHIP was created through historic, bipartisan legislation signed in 1997 by President Clinton. The SCHIP law appropriates $24 billion over 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. Hawaii, like all states with SCHIP plans, will receive federal matching funds only for actual expenditures to insure children.

"The Clinton administration and the states are working together to give children the health care they need to live longer, healthier lives," said Secretary Shalala. "It's a pleasure to approve the Hawaii amendment and I look forward to more states expanding their programs in the future."

SCHIP 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 any amendment to a state's SCHIP program.

Hawaii's initial SCHIP plan, a Medicaid expansion, was approved by Secretary Shalala on Jan. 19, 1999. The amendment approved today increases the income eligibility level for children below age 19 in families with income levels up to 200 percent of the federal poverty level. The current federal poverty level for a family of four is $17,050. The state's original plan extended eligibility to children ages 1 to 6 in families with income between 133 percent and 185 percent of the federal poverty level.

There will be no out of pocket costs to families in this program.

"Hawaii's newly expanded program is a positive demonstration that SCHIP is working and that states are enthusiastic about this program," said Nancy-Ann DeParle, administrator of the Health Care Financing Administration (HCFA), which administers SCHIP, Medicaid and Medicare. "It is through efforts like this 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 children the same kind of high quality health care that 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 SCHIP. "Free or low-cost health insurance is what families need to ensure their kids can grow up strong and healthy."

SCHIP plans have now been approved for all the states and territories.

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