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Sixteen States Receive HHS Grants For High-Risk Pools

The Department of Health and Human Services (HHS) has awarded almost $30 million in grants to 16 states that provide health insurance to residents who cannot get conventional health coverage due to an illness.

The grants will be used by the states to offset losses that they incurred in the operation of high-risk pools. The pools are generally state-created non-profit associations that offer health coverage to individuals with serious medical conditions, according to a government official.

Enrollment in these pools is growing, with more than 172,000 individuals enrolled in state pools, an official said.

"These grants will make it more affordable for states to expand access to healthcare through high-risk pools for the uninsured," HHS Secretary Tommy G. Thompson said. "Individuals who benefit from these pools usually have a history of health problems that make it extremely difficult to find affordable health coverage in the individual market."

The grants were authorized in the Trade Adjustment Assistance Reform Act of 2002. To be eligible, a state must have a "qualified" high-risk pool that meets the criteria specified in the Trade Act and must follow such rules as capping premiums at no higher that 150 percent of the standard charge in the state, according to a government official.

States were eligible for a grant that matches up to 50 percent of the losses incurred in the operation of the risk pools. Funds were distributed based on the number of uninsured individuals in each state, according to a government official.

The program is administered by HHS' Center for Medicare and Medicaid Services (CMS).

The 16 states include:

  • Alaska, $1,764,129;
  • Arkansas, $1,764,129;
  • Colorado, $2,945,322;
  • Connecticut, $1,460,719;
  • Illinois, $7,451,658;
  • Indiana, $2,889,802;
  • Iowa, $1,018,945;
  • Kansas, $1,337,299;
  • Kentucky, $2,297,008;
  • Minnesota, $1,710,789.
  • Mississippi, $1,890,350;
  • Montana, $638,228;
  • Nebraska, $719,841;
  • New Hampshire, $224,559;
  • North Dakota, $310,349; and
  • Oklahoma, $2,681,597.

    These grants are part of the Bush administration's broad strategy for expanding access to healthcare for the more than 40 million Americans without health insurance.

    The President's fiscal year 2004 budget plan would expand community healthcare centers that:

  • Care for the uninsured;
  • Strengthen and modernize the Medicaid program;
  • Offer health tax credits to help individuals obtain insurance; and
  • Extend Medicaid and State Children's Health Insurance Program (SCHIP) coverage to more Americans who otherwise would go without coverage.

    "Getting health insurance to the uninsured has been a high priority of the Bush administration," said Thompson. "These new grants for high-risk pools will help get coverage to people who otherwise would not have access to healthcare."

    Address: Department of Health and Human Services, Parklawn Building, 5600 Fishers Lane, Rockville, MD 20857.

  • This article is reprinted from Health Resources Publishing's "Health Grants Funding Alert." © 2004, Health Resources Publishing. Reproduction in whole or in part without written permission is prohibited.
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    This page was last updated: June 7, 2004