Department of Health and Human Services
HHS Logo Bottom
HHS Yellow Bar

News Release

FOR IMMEDIATE RELEASE
Friday, Jan. 16, 2004

Contact: CMS Public Affairs
(202) 690-6145

HHS Approves Michigan Request
to Expand Coverage to Uninsured Adults

HHS Secretary Tommy G. Thompson today announced the approval of Michigan's request under the new, more flexible Health Insurance Flexibility and Accountability (HIFA) Initiative to expand the use of SCHIP funds to offer health insurance to adults who are currently uninsured.

The state will expand health insurance coverage to childless adults with family incomes at or below 35 percent of the federal poverty level. Michigan is the ninth state to use the HIFA waiver to expand access to health care coverage. New Mexico, Oregon, Illinois, Colorado, New Jersey, Maine, Arizona and California also have been granted HIFA waivers.

"This new HIFA initiative gives states the flexibility they need to address the growing numbers of uninsured citizens," said Secretary Thompson. "It is not a cure for the problem of citizens without coverage, but it's a first step."

Michigan expects to enroll nearly 62,000 adults who currently do not have access to health insurance, over the course of the five-year demonstration.

For adults, the benefit package will include inpatient, outpatient, physician's surgical and medical services, laboratory and X-ray services, pharmacy and mental health and substance abuse services. Michigan will offer employer-sponsored health insurance through a voucher that is equal in value to the state's cost of providing service. Enrollment in the employer-sponsored plan is in lieu of receiving benefits through the state plan.

HIFA is an innovative Medicaid and SCHIP waiver approach that gives states greater flexibility to design health insurance programs that best suit their own needs. The Bush Administration is putting particular emphasis on broad statewide approaches to increase the number of citizens with health care coverage for low-income individuals. HIFA also encourages coordination between public and private coverage options for the uninsured.

###


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

Last Revised: January 16, 2004

HHS Home | Questions? | Contact HHS | Site Map | Accessibility | Privacy Policy | Freedom of Information Act | Disclaimers

The White House | FirstGov