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July 27, 2006

HHS Approves Montana's Plan to Expand, Simplify Child Health Program Enrollment

The Department of Health and Human Services announced July 18 its approval of a Montana plan to expand health coverage to 3,000 additional children from low-income families in the state.

According to HHS, the state's enrollment cap will increase from 10,900 to 13,900, as authorized by the Montana State Legislature in 2005, under the State Children's Health Insurance Program, which is a federal-state partnership program. "These changes in the state's plan will provide vital health care services to more children whose families earn a bit too much to qualify for Medicaid," HHS Secretary Michael Leavitt said.

HHS said its approval made "several other changes in Montana's SCHIP," including elimination of income documentation as a requirement for the application process and providing enhanced mental health services to enrollees. According to HHS, the state budget projects $24.7 million in total federal and state costs for the program, including $4.9 million for the 3,000 additional children.

HHS noted that the Montana Legislature also authorized SCHIP to match up to $2.1 million in federal payments, with private donations as a new source of funds. More than $10,000 in private donations has been raised to date.

Instead of requiring income documentation, Montana will conduct random quality assurance reviews on 10 percent of the applicants, to ensure eligibility.

The Montana plan also reduces the waiting period to qualify for SCHIP from three months to one month in the event of losing health insurance coverage, HHS noted. The state's plan also shortens the waiting period in event of a parent's death, or loss of insurance due to a change in employment. In addition, HHS said the application process is simplified by replacing a 16-page form with a four-page SCHIP application.