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Medicare News

For Immediate Release: Contact:
Saturday, March 20, 1999 CMS Office of Public Affairs
202-690-6145

For questions about Medicare please call 1-800-MEDICARE or visit www.medicare.gov.

CHILDREN'S HEALTH INSURANCE PROGRAM REACHES 1998 TARGET

NEARLY ONE MILLION CHILDREN ENROLLED

Nearly one million children have received health insurance coverage in the first year of the Children's Health Insurance Program (CHIP), HHS Secretary Donna E. Shalala announced today.

The CHIP law, passed in 1997, allocates $24 billion over five years to help states expand health insurance to children whose families earn too much to qualify for traditional Medicaid, yet not enough to afford private health insurance. The Children's Health Insurance Program is the most significant improvement in access to health care for children since the creation of Medicaid in 1965.

State and U.S. territories estimates show that close to one million children had health insurance through CHIP in 43 states and U.S. territories with programs operating during 1998. Of these, approximately 540,000 children were enrolled in individual state CHIP programs and 442,000 children were enrolled in Medicaid-CHIP expansion programs.

"One of the best things about this job is knowing that we can really make a difference in the lives of working families," said Secretary Shalala. "Without this program, these children would not have access to health insurance nor the opportunity for health care services on a regular basis. So far, this program has been a great success, and we will continue to work with states to enroll children every day."

CHIP is a state/federal partnership program that gives states three options for covering uninsured children: designing a new children's health insurance program; expanding current Medicaid programs; or a combination of both strategies. HHS must approve each plan before CHIP funds become available. Fifty-two CHIP plans--47 states, 4 U.S. territories and the District of Columbia--have been approved to date.

"One million children in one year is an amazing achievement since states are at various stages of implementation," said Nancy-Ann DeParle, administrator of the Health Care Financing Administration (HCFA), which administers CHIP, Medicaid and Medicare. "And it's just a start. Federal, state and local efforts are increasing to let working parents know health insurance is available to children through age 18," she added.

Today, the 52 approved state and U.S. territorial plans anticipate providing health insurance coverage for more than 2.5 million children by October 2000. To help states and local outreach efforts, President Clinton and the National Governors' Association recently launched the Insure Kids Now Hotline, 1-877-KIDS-NOW, and the Insure Kids Now Web site at http://www.insurekidsnow.gov.

The Insure Kids Now Hotline is a national toll free number which parents or other interested persons can call and be automatically routed to the proper agency in their state for information about free or low-cost health insurance for their children. The Insure Kids Now web site also offers information on children's health insurance coverage in each state or territory, information on how to apply for coverage, and guidelines for whether families might qualify for a plan.

"This is tremendous news," said Claude Earl Fox, M.D., M.P.H., administrator of the Health Resources and Services Administration, the agency working together with HCFA and the states and U.S. territories to implement CHIP. "We have all pulled together to help hard-working, low-income families give their kids the same kind of health care that other families take for granted. These first numbers show us that CHIP is working to do that. This new program has leveled the playing field for those kids and all of us will be better off for it."

Plans approved to date include (in order of their approval): 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, Hawaii, Guam and American Samoa.

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