CMHS Consumer Affairs E-News
August 26, 2003, Vol. 03-79

Updates from the U.S. Department of Health and Human Services

1. HHS AWARDS 204 GRANTS WORTH $56.1 MILLION TO EXTEND HEALTH CARE SERVICES TO LOW-INCOME AND UNINSURED AMERICANS

HHS Secretary Tommy G. Thompson has announced his intention to award 204 grants worth $56.1 million that will increase health care services to hundreds of thousands of low-income and uninsured Americans. The grants will create new service sites in the nation's network of health centers and expand the range of health care services offered at existing health centers.

"These awards continue our progress toward improving Americans' access to health care under President Bush's initiative to expand community health centers," Secretary Thompson said. "Health centers will provide care to more than 12.5 million people this year -- more than 2 million more people than they served in 2001. Many of their patients do not have health insurance and rely on these centers for everything from preventive services to acute care."

The awards include 79 "new access point" grants, totaling almost $43 million, to help communities establish new health center sites that will provide comprehensive primary health care services to an estimated 416,000 people, including many without health insurance. Subject to the availability of funds, awards will be made to grantees in the fall.

The remaining $13.1 million in grants will go to 125 existing health center grantees to expand essential oral health, mental health, substance abuse and pharmaceutical services for underserved rural and inner city-communities across America. Specifically, these awards include:

• almost $7 million to 48 grantees in 28 states to establish new or expanded oral health services;
• about $2.9 million to 19 grantees in 14 states and Puerto Rico to establish mental health and substance abuse services at sites that demonstrated a need for expanded capacity;
• more than $1.2 million to grantees in six states to implement comprehensive pharmacy services through health center pharmacy networks; and
• about $2 million to 52 grantees in 30 states to implement or expand health disparities collaboratives, which seek to improve clinical care at health centers by promoting greater teamwork among health professionals, improving procedures to track treatments and reach out to residents, and encouraging patients to take greater responsibility for monitoring their illnesses.

Launched in 2002, President Bush's five-year initiative to expand the health center network will add 1,200 new and expanded health center sites and increase the number of people served annually from about 10 million in 2001 to more than 16 million by 2006.

Health centers deliver preventive and primary care to patients regardless of their ability to pay. Almost 40 percent of patients treated at health centers have no insurance coverage, and others have inadequate coverage. Charges for services are set according to income, and fees are not collected from the poorest clients.

"Health centers' commitment to serving all who need health care is second to none," said Elizabeth M. Duke, administrator of HHS' Health Resources and Services Administration (HRSA). "Millions of Americans rely on health centers every day to provide the care and services their families need to get better or stay healthy. These health centers are a model of cost-effective, high quality primary health care for America."

HRSA manages the Consolidated Health Centers Program, which funds a national network of community health centers, migrant health centers, health care for the homeless centers and public housing primary care centers.

Expanding health centers in underserved communities is a key component of the Bush Administration's broad strategy for expanding access to health care for the more than 40 million Americans without health insurance. More information about the President's initiatives to help the uninsured is available at http://www.hhs.gov/news/press/2003pres/20030211.html.

Tables of all the grants are available at: http://www.hhs.gov/news/press/2003pres/20030826.html

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2. HHS APPROVES ILLINOIS PLAN TO EXPAND COVERAGE TO AN ESTIMATED 20,000 UNINSURED CHILDREN

HHS Secretary Tommy G. Thompson today approved a proposal by Illinois to further expand its State Children's Health Insurance Program (SCHIP) and provide health insurance to thousands of children who otherwise would not have coverage.

State officials expect the new expansion of their SCHIP program (known as KidCare) to cover an additional 20,000 currently uninsured children. This new group is in addition to the 109,000 children already enrolled in the program.

"This approval means many more Illinois children will enjoy healthier lives and be able to get the health care they need, when they need it," Secretary Thompson said. "The Bush Administration will continue to work together with states to find ways to improve the health and welfare of our children."

With the approval, Illinois can expand KidCare eligibility to children in families whose income is up to 200 percent of the federal poverty level -- up from the current limit of 185 percent of the federal poverty level. The federal poverty level for a family of four is $18,400.

SCHIP gives states three options for devising a plan to cover uninsured children: designing a new child health insurance program; expanding current Medicaid programs; or a combination of both strategies. HHS must approve any amendment to a state's SCHIP plan.

Illinois' initial SCHIP plan, a Medicaid expansion, was approved in April 1998. In March 2000, the Centers for Medicare & Medicaid Services approved the state's separate SCHIP program for children up to 185 percent of the FPL. The state provides coverage that is equivalent to the state employee health plan. Some premiums and copayments are charged on a sliding scale based on the family's income. There is a $100 annual copayment maximum for all families.

"Illinois' newly expanded program is a positive demonstration that SCHIP is working to reduce the number of uninsured children in America," said Tom Scully, administrator of the Centers for Medicare & Medicaid Services, which administers SCHIP, Medicaid, and Medicare.