HHS APPROVES WISCONSIN EXPANSION
OF CHILDREN'S HEALTH INSURANCE PLAN

This is the second phase of Wisconsin's big win in the Rose Bowl, this approval marks two big victories for Wisconsin in one month," said Secretary Shalala on May 29,1998. State officials expect the second phase of the program to enroll an estimated 23,000 children by October 2000, a significant increase over the state's current CHIP program, which is expected to enroll 1,300 children over the same period.

"Coming on the heels of Wisconsin's big win in the Rose Bowl, this approval marks two big victories for Wisconsin in one month," said Secretary Shalala. "I also want to thank Wisconsin's congressional delegation, who worked with us and with state and local officials, to help Wisconsin expand health coverage to more uninsured children and their parents."

While the CHIP expansion will provide health coverage to children, the waiver for the state's Medicaid program will allow Wisconsin to enroll the parents of CHIP-eligible children in that program. The state expects to enroll up to 27,000 adults in BadgerCare through this Medicaid waiver.

Wisconsin is eligible to receive as much as $38 million in new funds for fiscal year 1998 under the federal CHIP program, the historic, bipartisan legislation signed last year by President Clinton. The CHIP law allocates $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.

Wisconsin, like all states with CHIP plans, will receive federal matching funds only for actual expenditures to insure children. Together, the 50 state and territorial plans approved to date anticipate providing health insurance coverage for more than 2.5 million currently uninsured children within the next three years.

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 first phase of Wisconsin�s CHIP plan extended Medicaid coverage to children ages 15-18 who are in families with incomes of up to 100 percent of the federal poverty level (the federal poverty level is $16,450 for a family of four). The newly approved expansion will include all remaining children in families with incomes of up to 185 percent of poverty who are not currently covered by Medicaid. Once a family is enrolled, it can remain in the program until its income reaches 200 percent of poverty.

The benefit package will be the regular state Medicaid package. Families with incomes above 150 percent of poverty will pay a premium that will be between 3 and 3.5 percent of annual income.

"The Wisconsin amendment is a gratifying demonstration that CHIP is working and that states are enthusiastic about this program," said Nancy-Ann DeParle, administrator of the Health Care Financing Administration, which administers CHIP, Medicaid and Medicare. "It is through efforts like Wisconsin's 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, 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. CHIP plans have been approved in 50 U.S. states and territories. In order of their approval, they are: 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, Virgin Islands, the District of Columbia, Arizona, North Dakota, Louisiana, Virginia, Mississippi, Kentucky, Alaska, Vermont, New Mexico and Hawaii. HCFA is also reviewing plans from Tennessee, Guam, and American Samoa. Wisconsin is the tenth plan to have an amendment approved.

###

Note: HHS press releases are available on the World Wide Web at: www.dhhs.gov.