Federal officials have cleared the way for Pennsylvania to implement its Cover All Kids program, which aims to make affordable health insurance more available to the state's uninsured young people.

	Annie O'Neill, Post-Gazette U.S. Sen. Bob Casey gets some pointers on how to run an electronic toy from Asa Martin, 5, in a Children's Hospital play room yesterday. Mr. Casey was at the hospital to discuss efforts to provide health insurance for the state's children. Click photo for larger image.

"Our pledge was to ensure that every Pennsylvania child had access to health insurance coverage," Gov. Ed Rendell said in a statement yesterday. He said that because of the federal approval, announced yesterday, Pennsylvania officials can "start to make that pledge a reality."

The state was notified of that approval yesterday by the U.S. Centers for Medicare and Medicaid Services, said George Hoover, deputy insurance commissioner for CHIP and adultBasic programs.

The approval expands Pennsylvania's Children's Health Insurance Program, which provides coverage to young people whose families earn too much to qualify for other assistance programs such as Medicaid. Coverage is paid through state funds, with the federal government reimbursing about 68 percent of the cost.

Mr. Rendell said the approval also bodes well for "Cover All Pennsylvanians," his proposal to provide more affordable coverage for uninsured adults.

Up to now, Pennsylvania's program only received federal reimbursement for children in families whose income is up to 200 percent of the federal poverty level, about $41,300 for a four-member family, Mr. Hoover said.

The expanded program will provide federally-subsidized coverage for families that are at up to 300 percent of the poverty level, meaning income of about $61,950 for a family of four. Those families would pay sliding scale fees for the coverage based on their incomes.

Families with incomes at 200 percent of the poverty level would pay no monthly premiums; those with higher incomes up to 300 percent of the poverty level would pay premiums ranging from about $38 to $60 per child.

Families with incomes above 300 percent of the poverty level would pay about $150 a month per child.

Enrollment in the program will begin next month, Mr. Hoover said. Young people from birth to age 19 are eligible.

State officials estimate that about 133,000 Pennsylvania children are uninsured, and all but 110,000 qualified for coverage under programs that existed prior to Cover All Kids, he said.

But officials expect more families will take advantage of the coverage with the message that it is available to families of all income levels, Mr. Hoover said.

There are some exceptions. Children in families with incomes above 200 percent of the poverty level, for example, have to be uninsured for six months to qualify.

For more information, parents can call 1-800-986-5437. They also can visit www.compass.state.pa.us to apply online.

Mr. Hoover said state officials were relieved to receive federal approval of Cover All Kids. In his budget proposal, President Bush has proposed targeting the State Children's Health Insurance Program to young people at or below 200 percent of the poverty level. He also has proposed funding levels that some consider inadequate.

The federal government currently spends about $5 billion annually on SCHIP, and the president's budget proposes $4.8 billion in new money for the program over the next five years.

But the new funds won't be enough to cover rapidly rising health care costs and new programs at the state level, according to a report released yesterday by the Center on Budget and Policy Priorities.

Jeff Nelligan, director of media affairs for the Centers for Medicare and Medicaid Services, said the president's budget focuses on SCHIP's original objective of improving health insurance coverage for children in low-income families.

During a visit to Pittsburgh yesterday, U.S. Sen. Bob Casey, D-Pa., said the president's budget proposal would hamper states' efforts to provide coverage to more children.

Speaking at Children's Hospital in Oakland, Mr. Casey praised Pennsylvania's efforts to expand coverage for young people.

Joan Benso, president and chief executive officer of Pennsylvania Partnerships for Children, called the president's budget proposal "short-sighted." But she praised approval of Cover All Kids.

"We know that children who have health insurance are less likely to get preventable diseases, are less likely to use emergency room care, and are more likely to attend school," she said. "All these things save us money as taxpayers."