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State officials expect this expansion of their SCHIP program to cover 14,000 currently uninsured children, in addition to the 11,500 children already enrolled.

West Virginia is eligible to receive over $21 million in funds for fiscal year 2000. SCHIP is 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. West Virginia, 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 West Virginia 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.

West Virginia's initial SCHIP plan, a Medicaid expansion, was approved by Secretary Shalala on Sept. 15, 1998. The state subsequently added a separate children's health insurance program. The amendment approved today increases the income eligibility level for children below age 19 in families with income levels from 150 percent to 200 percent of the federal poverty level (FPL). The current FPL for a family of four is $17,050.

Families with incomes between 150 and 200 percent of the federal poverty level will be subject to cost-sharing of up to $250 per child per year with an annual family maximum of $750. Families will be charged copayments for such items as prescription drugs and doctor visits. However, there is no cost sharing for American Indian/Alaska Native families and cost-sharing for other families will not exceed 5 percent of their income.

"West Virginia's newly expanded program is a positive demonstration that SCHIP is working and that states are enthusiastic about this program," said Michael Hash, acting 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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