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For Immediate Release
May 5, 1998

LEGISLATURE EXPANDS CHILDREN'S HEALTH INSURANCE PROGRAM

HARRISBURG - Legislation that would expand Pennsylvania's Children's Health Insurance Program (CHIP) to provide free and low-cost health-care coverage to as many as 125,000 more children was approved by the state Senate today, according to Sen. Mary Jo White (R-21).

White said Senate Bill 1440 would enable the state to take advantage of a 1997 federal law that will provide states with $20 billion over the next five years for programs such as CHIP. The CHIP program, created by the Legislature in 1992, provides subsidized health insurance for children in working families without employer-funded health insurance, and who cannot afford to purchase coverage in the open market.

Currently, approximately 54,000 children are enrolled in CHIP, White said.

White explained that, if the bill is signed into law and Pennsylvania participates in the federal program, every $1 that Pennsylvania spends on CHIP will draw down 67 cents from the federal government. The new state budget allocates $15.4 million for CHIP; the state will also provide $32 million from the state sales tax on cigarettes.

The measure would also expand CHIP to increase the program's age and income limits.

White said the age limit would be increased to provide free health insurance for children up to age 19 in families with incomes no greater than 200 percent of the federal poverty level - up to $29,700 for a family of four. Current law provides free insurance for children under age 17, with the family income capped at 185 percent of the poverty level.

For children up to age 19 in families earning between 200 and 235 percent of the poverty level, health insurance would be available through the subsidized, low-cost program. Under federal poverty guidelines, a family of four earning between $32,100 and $37,700 would qualify, White said.

"This is a tremendous program, and now we have the opportunity to expand it to help even more working families," White said. "In many cases, privately purchased coverage is prohibitively expensive, forcing families go without this safety net and risk financial disaster if an unexpected health crisis arises. This measure will enable the state to give more families with children peace of mind - and the ability to make routine doctor visits that can offset serious health problems."

Senate Bill 1440 now goes to the House of Representatives for consideration.