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News Release

HHS Awards $1 Million Grant to South Dakota to Promote High-Risk Pools to Cover Uninsured Residents
Maryland Receives Additional $310,000 To Extend Support For Similar Effort

HHS Secretary Tommy G. Thompson today announced a grant of $1 million to South Dakota to help the state create a high-risk insurance pool. South Dakota is the second state to receive such a grant under a new federal initiative to encourage this kind of coverage for people with serious health problems that make it difficult to obtain health insurance.

"This grant will help South Dakota to create a high-risk pool that can provide coverage to residents who otherwise would have difficulty obtaining coverage," Secretary Thompson said. "These pools typically help those who have a history of health problems and are either self-employed or work for small employers that do not provide health insurance coverage."

Secretary Thompson also announced today that Maryland would receive an additional $310,345 to Maryland to further support its efforts to create a high-risk pool. Maryland received $689,655 in April under the program.

The grants are part of a $100 million federal initiative to create and support high-risk pools nationwide authorized in the Trade Adjustment Assistance Reform Act of 2002. HHS is making $20 million available as seed money for states that agree to establish high-risk pools. In addition, HHS is making an additional $80 million available over two years to help offset the losses states with existing high-risk pools incur as a result of providing this coverage. HHS' Center for Medicare & Medicaid Services (CMS) administers the program.

A high-risk pool typically is a state-created non-profit association that offers health insurance to individuals with pre-existing health conditions. Enrollment in these pools is growing, with over 172,000 individuals enrolled in risk pools nationwide. South Dakota began enrolling people in its high-risk pool on August 1, 2003. Maryland's high-risk pool has been operating since July 1, 2003.

To receive a seed grant, a state cannot have an existing "qualified" high-risk pool as of August 6, 2002 (the date of enactment of the Trade Act) and it must intend to create a "qualified" high-risk pool that meets the criteria specified in the Trade Act.

"Getting health insurance to the uninsured has been a high priority of the Bush Administration," said CMS Administrator Tom Scully. "These federal grants will help get coverage to people who otherwise would not have insurance."

More information about risk pools is available at http://www.cms.hhs.gov/riskpool. More information about the Bush Administration's efforts to address the needs of Americans without health insurance is available at http://www.hhs.gov/news/press/2003pres/20030930b.html.

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

Last Revised: October 28, 2003