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Date: Wednesday, Sept. 10, 1997 FOR IMMEDIATE RELEASE Contact: HCFA Press Office(202) 690-6145
The Children's Health Insurance Program, which President Clinton signed into law five weeks ago, provides $24 billion in federal matching funds over five years to help states expand health care coverage to the nation's estimated 10 million uninsured children. Nearly $4.3 billion is available in fiscal year 1998 to help states provide coverage to uninsured low-income children.
The state allotments and formula for calculating them go on display at the Federal Register today. States can begin drawing federal matching funds as of Oct. 1. The Department of Health and Human Services must approve a state's plan before it can receive federal matching funds. However, states that do not have a plan in place by Oct. 1 may receive their FY 1998 matching funds if they obtain approval for a plan by the end of FY 1998.
"One out of every seven children in this country is uninsured, and most of these uninsured kids are in working families," said HHS Secretary Donna E. Shalala. "This cooperation between the federal government and states will provide health insurance, preventive care and other important health services to kids who need them."
"This is the largest expansion of insurance for low-income children since the enactment of Medicaid in 1965, and it is among the Clinton Administration's most significant health care achievements," said HCFA administrator Bruce C. Vladeck. HCFA will oversee the state programs through its Center for Medicaid and State Operations in cooperation with the Health Resources and Services Administration.
The federal government will match state spending at an "enhanced" match rate that will be higher than each state's current Medicaid match rate. A state that now gets $1 from the federal government for every $2 spent on its Medicaid program will get $1.30 for every $2 spent on its children's health insurance plan. A list of state enhanced match rates is included in today's Federal Register notice.
State allocations are based on the number of uninsured children at or below 200 percent of the federal poverty level. The allocation formula will change after three years to account for reductions in the number of uninsured children. In 2001, 75 percent of the allocations will be based on the number of uninsured children at or below 200 percent of the federal poverty level and 25 percent will be based on the total number of children, both insured and uninsured, at or below 200 percent of the poverty level. After 2001, 50 percent of the allocation will be based on the total number of children at or below 200 percent of poverty.
The Children's Health Insurance Program is designed to give states maximum flexibility while ensuring meaningful coverage. States may set eligibility at up to 200 percent of the federal poverty level, or at 50 percent above their current Medicaid eligibility level, whichever is higher. Coverage would include inpatient and outpatient hospital services, physicians' surgical and medical services, laboratory and X-ray services, and well baby/child care including immunizations.
States have several options for providing such coverage. They can:
States must maintain current Medicaid eligibility standards in order to obtain Children's Health Insurance Program funds.
Lists of state allocations and enhanced match rates are available upon request.