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News Release

HHS APPROVES MAINE PLAN
TO EXPAND HEALTH INSURANCE COVERAGE TO 11,500 RESIDENTS

HHS Secretary Tommy G. Thompson today announced the approval of Maine's request to expand health insurance coverage to about 11,500 residents without health insurance under the Administration's Health Insurance Flexibility and Accountability (HIFA) Initiative.

"This approval means health coverage for thousands of uninsured Maine residents," Secretary Thompson said. "By giving Maine and other states more flexibility to provide health care to low-income citizens, we are helping many more people across the country gain access to quality health care."

Under the waiver, Maine expects to add 11,500 adults who currently do not have insurance to Maine Care, the state's Medicaid program. Initially, the coverage will be available to childless adults with incomes at or below 100 percent of the federal poverty level (FPL). The FPL is $8,860 for an individual. After a year of operation, the state hopes to move the eligibility level up to 125 percent of FPL. Participants will receive the standard Medicaid benefit package.

The state will use re-directed disproportionate share hospital payments to fund the expanded health insurance offering.

Secretary Thompson launched the new HIFA initiative last year to encourage states to expand access to health care coverage for low-income individuals through Medicaid and the State Children's Health Insurance Program (SCHIP) demonstrations. The initiative gives states more flexibility to coordinate these companion programs and offers a simpler application for states that commit to reducing the number of people without health insurance. HIFA also encourages coordination between public and private coverage options for the uninsured.

As former governors, President Bush and Secretary Thompson have made it a priority to make it simpler and easier for governors to submit Medicaid and SCHIP waiver requests and to have those requests considered promptly. Since January 2001, HHS has approved waivers and plan amendments that have expanded eligibility to more than 2 million people and enhanced benefits for more than 6 million people.

Maine is the fifth state to use the HIFA waiver initiative to expand access to health care coverage. HHS approved Illinois' HIFA waiver yesterday, and previously granted waivers to Arizona, California and New Mexico. More information about the HIFA initiative, including an online template that states can use to submit applications, is available at www.cms.gov/media/.

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Note: All HHS press releases, fact sheets and other press materials are available at www.hhs.gov/news.

Last Revised: January 16, 2003