Appropriates funds for the Children's Health Insurance Program.

HOUSE OF REPRESENTATIVES                H.B. NO.627        
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            

                   A  BILL  FOR  AN  ACT



 1      SECTION 1.  The legislature finds that the federal
 2 children's health insurance program (CHIP) provides Hawaii with
 3 an important opportunity to expand health care coverage to low-
 4 income children who are uninsured.  CHIP is considered the
 5 largest expansion of health care coverage since the enactment of
 6 medicare and medicaid.
 7      In January 1998, the department of human services and the
 8 department of health convened a CHIP planning committee to
 9 develop and submit Hawaii's CHIP proposal prior to the federal
10 submittal deadline of June 30, 1999.  The proposal was completed
11 and submitted to the federal Health Care Financing Administration
12 of the Department of Health and Human Services on October 19,
13 1998.
14      The CHIP planning committee developed a proposal to expand
15 Hawaii's medicaid and QUEST programs, and was submitted as a
16 placekeeper plan to lock in federal funding for federal fiscal
17 years 1998 through 2000.

Page 2                                                     
                                     H.B. NO.627        

 1      The plan calls for an expansion of Hawaii's medicaid and
 2 QUEST programs, phasing-in health coverage for children who are
 3 uninsured, by age and by family income level.
 4      The first phase of Hawaii's CHIP proposal requests coverage
 5 of uninsured children, ages one through six with family incomes
 6 between one hundred thirty-four per cent and one hundred eighty-
 7 five per cent of the federal poverty level.
 8      Subsequent amendments will be submitted, depending on
 9 available funding, to effect the State's plan for implementation
10 of the second and third phases of the expansion.  When fully
11 implemented, coverage for children will extend from birth through
12 age eighteen to children in families with incomes below two
13 hundred per cent of the federal poverty level.
14      Hawaii was allotted $9,900,000 for CHIP for federal fiscal
15 years 1998 through 2000 with a further commitment to fund the
16 program through federal fiscal year 2008.  This federal allotment
17 requires a state match of $4,800,000, which represents an
18 enhanced federal matching rate of sixty-five per cent.
19      Although CHIP is extremely worthy of funding, continued
20 constraints on state revenues precludes the inclusion of CHIP
21 funding in the governor's executive budget for biennium fiscal
22 years 2000 and 2001.
23      The purpose of this Act is to appropriate funds for the CHIP
24 program.

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                                     H.B. NO.627        

 1      SECTION 2.  There is appropriated out of the tobacco
 2 agreement special fund of the State of Hawaii the sum of $   or
 3 so much thereof as may be necessary for fiscal year 1999-2000 and
 4 the sum of $   or so much thereof as may be necessary for fiscal
 5 year 2000-2001 to fund CHIP.
 6      SECTION 3.  The sums appropriated shall be expended by the
 7 department of health for the purposes of this Act.
 8      SECTION 4.  This Act shall take effect on July 1, 1999.
10                           INTRODUCED BY:  _______________________