States can choose to subsidize the purchase of private health insurance, expand Medicaid eligibility, or purchase direct health care services through federally approved waivers. The grant program is authorized for five years. CBO estimates that two million previously uninsured children will be provided coverage. A state choosing to subsidize the purchase of private health insurance must offer one of several commonly offered comprehensive benefit policies, or their actuarial equivalent.
Additional services are prescription drugs, mental health, vision, and hearing.
Eligibility States can only spend grant funds on targeted low-income children up to age 19. State Maintenance of Effort Requirements States may not lower income and resources standards for Medicaid eligibility below levels in effect as of June 1, 1997. Other Limitations Funds cannot be used for abortion services except in the case of rape, incest, or to save the life of the mother. Process States must submit a plan for approval. Plans must describe the state program, population of children without insurance, describe what the state is doing to provide insurance for these children such as Medicaid outreach.