
DATE: Wednesday, August 6, 1997             TAG: 9708060454

SECTION: FRONT                   PAGE: A13  EDITION: FINAL 

SOURCE: BY LARRY O'DELL, ASSOCIATED PRESS 

DATELINE: RICHMOND                          LENGTH:   65 lines

STATE MUST PAY ONE-THIRD OF HEALTH INSURANCE PLAN

The state will have to pay at least $30 million a year to take full advantage of a federal plan providing health insurance to 72,000 children from low- to moderate-income Virginia families.

Patrick W. Finnerty, an analyst for the legislature's Joint Commission on Health Care, briefed the panel on the initiative Tuesday.

The State Children's Health Insurance Program is part of the new federal budget agreement. It provides $24 billion over five years to insure children whose families have no health insurance and don't qualify for Medicaid.

Virginia's share will be at least $60 million a year, Finnerty estimated. However, the law requires states to match a portion of the grant. Virginia would have to kick in roughly $1 for every $2 in federal money.

Sen. Joseph V. Gartlan Jr., D-Fairfax and a senior member of the Senate Finance Committee, said it will be difficult to find the $30 million needed to fully implement the program right away.

``At this point we know we've got a big revenue surplus, but we've got our staff people telling us most of it will be eaten up by required spending increases,'' Gartlan said.

State officials expected to end the fiscal year with about a $225 million surplus. The year ended June 30, but the exact surplus has not yet been calculated.

Jill A. Hanken, staff attorney for the Virginia Poverty Law Center, said it would be a shame if Virginia fails to get every federal dollar possible.

``With a generous federal match, Virginia can triple its money by investing in children's health,'' she said. ``It's a very exciting opportunity to provide health insurance to a vulnerable population.''

The coverage will be available to families that earn no more than double the federal poverty rate - $23,220 for a single parent with one child, $32,100 for a family of four, or $53,860 for a family of eight.

However, when the screening process finds uninsured kids who are eligible for Medicaid, they must be enrolled in that program. That would further drive up the state's costs.

Finnerty said about 82,300 Virginia children are eligible for Medicaid but are not enrolled. It would cost about $43 million a year to put them on Medicaid, he said.

Del. David G. Brickley, D-Prince William and a member of the commission, cautioned against worrying too much about cost. He said one of the commission's goals is to reduce the number of uninsured Virginians. ILLUSTRATION: IN VIRGINIA

Here are highlights of the five-year, $24 billion federal

children's health insurance initiative and its impact on Virginia:

About 72,000 Virginia children who are not eligible for Medicaid

and not privately insured will be eligible for coverage.

Virginia will be eligible to receive $60 million to $80 million

in federal funds, but will have to kick in $1 for every $2 in

federal money.

Uninsured children under age 19 living in families with incomes

no greater than twice the federal poverty level will be eligible.

For a family of four, the income limit would be $32,100 a year.

Uninsured children found through the screening process to be

eligible for Medicaid must be enrolled in Medicaid. It would cost