For Immediate Release
Office of the Press Secretary
August 3, 2001
HHS To Give States New Options for Expanding Health Coverage
New Initiative Promotes State Innovations To Expand Access For The Uninsured
HHS Secretary Tommy G. Thompson today announced a new initiative that will make it faster and easier for states to expand access to health care coverage for low-income individuals through Medicaid and the State Children's Health Insurance Program (SCHIP) demonstrations.
"Our goal is to give governors the flexibility they
need to expand insurance coverage to more Americans through innovative
approaches, including the kind of health insurance options available in
the private sector," Thompson said. "Through this
initiative, we are creating a new, simpler process for states to
propose and implement creative ideas to help uninsured residents."
The Health Insurance Flexibility and Accountability
Initiative will give governors more tools and flexibility to coordinate
their Medicaid and State Children's Health Insurance Program to expand
access to health care coverage:
- States will have more
flexibility to design benefit packages that will promote expanded
access to health care coverage and meet the needs of residents.
- Special emphasis will be placed on coordinating Medicaid
and SCHIP with private-sector insurance programs to achieve seamless
coverage for low-income individuals.
- In exchange for
up-front flexibility, states will be required to set goals for reducing
the number of residents without health care coverage and then document
their progress toward reaching that goal.
- A new
electronic application will make it quicker and easier for states to
propose and implement new approaches to promote access to health care
As former governors, President Bush and Secretary
Thompson have made it an administration priority to make it simpler and
easier for governors to submit Medicaid and SCHIP waiver requests and
to have those requests considered promptly. This initiative
represents the latest step to promote state innovations to strengthen
and improve these programs.
The new approach will encourage states to design
benefit packages that will best meet the needs of their
residents. For example, a state could make different
benefits available to various populations, enabling the states to
expand health care coverage to more individuals and families who may
not be eligible for Medicaid or SCHIP under current law.
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This initiative will make it easier for states to
operate demonstration projects that are designed to
extend health care coverage to currently uninsured
residents. As in the past, these projects must be budget
neutral, meaning that states would have access to the same amount of
federal funding under the demonstration than they would have received
under current law.
States wishing to take advantage of the initiative and
seek expedited review of their waiver requests will be able to use a
new online application that will be available at the Web site of the
Centers for Medicare & Medicaid Services (CMS) at
www.hcfa.gov/medicaid. CMS, formerly the Health Care
Financing Administration, is the HHS agency that oversees the joint
federal-state Medicaid and SCHIP programs.
"We intend to use today's technology to speed up and
simplify the process and cut down on the bureaucratic red tape and
paperwork that stifles new approaches to expanding health coverage,"
Thompson said. "By increasing flexibility, promoting innovation, and
demanding accountability, we are giving states more options to increase
the number of individuals with access to affordable health insurance."
### Note: All HHS press releases, fact sheets and other press materials
are available at www.hhs.gov/news.