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

News Release

FOR IMMEDIATE RELEASE
Monday, Oct. 4, 2004

CMS Media Affairs
(202) 690-6145

HHS Awards Supplement Grant to Alabama to Offset Costs of Insurance for Residents Too Sick for Conventional Coverage

HHS Secretary Tommy G. Thompson today announced a $2,825,618 grant to Alabama to support efforts to provide health insurance to residents who cannot get conventional health coverage because they are too sick. The grant will be used by the state to offset losses incurred in FY 2002 in its high-risk pool, which offers health coverage to individuals with serious medical conditions.

"The grant will help Alabama provide access to health care to those who need it most," Secretary Thompson said. "People who benefit from these pools usually have a history of health problems that make it extremely difficult to find affordable health coverage, so we're taking steps to help these people get health insurance coverage."

Alabama's high-risk pool currently has over 2,100 enrollees.

To date, HHS has awarded $43.6 million to 24 states through two grant programs to support high-risk pools. Enrollment in these pools is growing, with more than 172,000 individuals enrolled in state pools across the country.

The grants were authorized in the Trade Adjustment Assistance Reform Act of 2002 (Trade Act). To be eligible, a state must have a "qualified" high-risk pool that meets the criteria specified in the Trade Act and must follow such rules as capping premiums at no higher than 150 percent of the standard charge in the state. States are eligible for a grant that matches up to 50 percent of the losses incurred in the operation of the risk pools. Funds were distributed based on the number of uninsured individuals in each state. HHS' Center for Medicare & Medicaid Services (CMS) administers the program.

Today's grant is part of the Bush Administration's broad strategy for expanding access to health care for the more than 40 million Americans without health insurance.

"Getting health insurance to the uninsured has been a high priority of the Bush Administration," said Mark B. McClellan, M.D., Ph.D., administrator of the Centers for Medicare & Medicaid Services. "As a physician, I know how important it is to have access to regular medical care. These grants for high-risk pools will help people who otherwise might not be able to afford high medical bills get the care they need."

More information about risk pools is available at www.cms.hhs.gov/riskpool.

###


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

Last Revised: October 4, 2004

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

The White House | FirstGov