Sec. Thompson Approves Minnesota’s ‘Long-Sought’ CHIP Waiver, Certain Parents Will Be Eligible

HHS Secretary Tommy Thompson on June 13 approved a waiver granting Minnesota federal funding to expand MinnesotaCare -- the state's health insurance program for low-income persons -- to include the parents and caretaker relatives of Medicaid- or CHIP-eligible children (HHS release, 6/13). Because MinnesotaCare was in place before the federal CHIP program was established in 1997, the state was previously not eligible for federal CHIP dollars to fund services for the population eligible for coverage prior to 1997. As a result, the state sought a federal waiver to "access millions of dollars" for children's health care, but was unable to do so "for years" (Kaiser Daily Health Policy Report, 3/1). Now with the "long-sought waiver" in hand, Minnesota will receive an enhanced federal match for the health care costs of adults in families with annual incomes between 100% and 200% of the federal poverty level, or between $17,650 and $35,300 for a family of four. Over the next five years, the federal government will pay an additional $50 million to cover the low-income adults enrolled in MinnesotaCare (Gordon, Minneapolis Star Tribune, 6/14). The waiver also stipulates that in 2002, Minnesota will eliminate premiums for children enrolled in MinnesotaCare who live in families earning up to 185% FPL, or an annual income of about $32,600 for a family of four. In addition, parents will pay premiums on a sliding fee scale, beginning at 2.3% of household income (HHS release, 6/13).