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FOR IMMEDIATE RELEASE
Thursday, June 7, 2001 		Contact: HCFA Press Office
(202) 690-6145

HHS APPROVES CHANGES
IN LOUISIANA SCHIP PROGRAM

HHS Secretary Tommy G. Thompson has approved a change in the Louisiana State Children's Health Insurance Program (SCHIP) -- known as the LaCHIP Program -- that will make the program available to more children who otherwise would not have coverage.

The approval will allow the state to cover children in families with incomes up to 200 percent of the federal poverty level -- an increase over the current income limit of 150 percent of poverty. The federal poverty level for 2001 is $17,650 for a family of four. Today's action also allows the state to eliminate the three-month period of noncoverage that children currently must undergo before being eligible to enroll in the program. According to Louisiana officials, LaCHIP is serving over 49,000 children. This income expansion will allow another 22,575 children to be enrolled.

Louisiana is eligible to receive over $82 million in federal funds for fiscal 2001. SCHIP is historic, bipartisan legislation enacted in 1997. 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 insurance. Louisiana, like all states with SCHIP plans, will receive federal matching funds only for actual expenditures to insure children.

"SCHIP has proven to be a very successful partnership between federal and state governments. Today's approval demonstrates the Bush administration's commitment to giving states flexibility in providing health insurance to children who otherwise would not have it," said Secretary Thompson.

SCHIP gives states three options for devising a plan to cover uninsured children: designing a new children's health insurance program; expanding Medicaid programs; or a combination of both strategies. HHS must approve any amendment to a state's SCHIP program.

"Louisiana's move to increase the number of children who can enroll as well as reduce the waiting period for children who need health insurance is good news for those families," said Thompson. "Changes to enhance access to the program demonstrate how popular SCHIP is with states. Both states and the Bush administration are enthusiastic about this program to get access to health care to children."

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

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Note: All HHS press releases, fact sheets and other press materials are available at www.hhs.gov/news.