This is an archive page. The links are no longer being updated.

State officials expect this expansion of their SCHIP program to cover an additional 19,600 currently uninsured children, in addition to the 61,500 already covered.

Maryland is eligible to receive over $56 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 coverage to children whose families earn too much for traditional Medicaid, yet not enough to afford private health insurance. Maryland, 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 Maryland 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.

Secretary Shalala approved Maryland's initial SCHIP plan, a Medicaid expansion, on July 29, 1998. After initial approval of its plan, Maryland also created a separate SCHIP program for a new group of uncovered children. Today's amendment to the Maryland SCHIP program raises the income eligibility level to cover families with incomes between 200 percent and 300 percent of the federal poverty level (FPL). The current FPL for a family of four is $17,050.

For children covered as a result of this amendment, the state will introduce cost sharing and establish a premium assistance program to provide coverage through employer-sponsored health benefit plans that meet the federal SCHIP requirements.

For families with incomes between 200 percent and 250 percent of FPL, the premiums will be $38 per month per family. For families with incomes above 250 and at or below 300 percent of FPL, the premium will be $47 per month per family. Families enrolled in the premium assistance program will not be responsible for any copayments, coinsurance, or deductibles imposed by the employer plan. The providers of medical services will bill the state and receive direct reimbursements for these amounts. Cost sharing will not exceed 5 percent of a family's income and no cost sharing is imposed on American Indian/Alaska Native families.

"Maryland's newly expanded program is a positive demonstration that SCHIP is working and that states are enthusiastic about this program," said Mike 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 healthy and strong."

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

###