Overview

Illinois claims the distinction of being the only state to significantly increase access to care for both children and parents during the current budget crunch without making other eligibility or benefit cuts or significant provider rate reductions. It has been able to do this largely through a Health Insurance Flexibility and Accountability (HIFA) waiver that allowed it to provide premium assistance and direct coverage to low-income parents, tapping the unused portion of its federal Children's Health Insurance Program (CHIP) allotment. Converting state-only funded premium assistance program KidCare Rebate and other state programs to the Medicaid/CHIP umbrella provided an influx of new funds to implement the initial phase of the FamilyCare program. Additional state dollars and federal matching dollars are being used to fund subsequent phases, which will ultimately allow Illinois to expand public health coverage—with a premium assistance option—to parents up to 185 percent of the federal poverty level. The state estimates it will take approximately three years to achieve this goal. The ability to tap unused federal CHIP funds for a new program (FamilyCare) and for a previously state-only program (KidCare Rebate) has allowed Illinois to stretch its dollars and expand eligibility without making cutbacks in other coverage programs. The fully implemented program was projected to cost about $180 million, of which the state contribution would be $63 million as a result of the enhanced 65 percent federal match.

For More Information

Web site: www.kidcare.org Contact: Anne Marie Murphy, Medicaid Director, Illinois Department of Public Aid Phone: (217) 782-2570 E-mail: anne.marie.murphy@mail.idpa.state.il.us