To: somethingwicked who wrote (864 ) 9/25/2000 7:19:13 AM From: John Carragher Respond to of 10042 Fact 40 states didn't spend the money due to federal government administering the program in such a rigid, inflexible way that it prevented them from spending the money for children who might have benefited. Give the money to the states and let them administer it! 40 states fail to spend federal millions to insure poor children ASSOCIATED PRESS NEW YORK - Forty states, including New Jersey, may have to give up hundreds of millions of dollars of federal money earmarked for health insurance for children in low-income families because they have not used all their allotted funds, the New York Times reported yesterday. About 45 percent of the $4.2 billion provided in 1997 by Congress has not been spent by the states, state and federal officials said. Any money left after a Sept. 30 deadline will be redistributed to the 10 states that used their full allotments of federal money under the Children's Health Insurance Program, which was created by Congress in 1997. For Louisiana, that would mean giving up $63.7 million, or 63 percent of its allotment of $101.7 million. California and Texas - which together have 29 percent of the nation's 11 million uninsured children - stand to lose $590 million and $446.3 million, respectively. New Jersey has spent $78.4 million of the $88.4 million allotted to it, and thus stands to lose $10 million, the Times quoted a state official as saying. Pennsylvania spent all the $117 million it received. It and nine other states that have used all of their allotments - Alaska, Indiana, Kentucky, Maine, Massachusetts, Missouri, New York, North Carolina and South Carolina - will have one year to spend the extra money, after which it will revert to the Treasury. The Children's Health Insurance Program was designed to help children in families with too much income to qualify for Medicaid and too little to afford private insurance. Congress in 1997 committed to providing $40 billion for the program nationwide over 10 years. States had three years beginning Oct. 1, 1997, to use the first year's installment of $4.2 billion. State officials say the program provides care to more than two million children while stimulating improvements in Medicaid. But spending has lagged behind expectations. Officials in 20 states say they encountered major problems implementing the program because in some cases it took more than a year to start enrollment; some states could not find enough eligible children, and others said the complex application procedure deterred enrollment. "If we enrolled every single eligible child in Colorado, we still couldn't spend our full allocation of federal money," said William N. Lindsay, head of the board that supervises the program in Colorado. Some states complained that the federal government administered the program in such a rigid, inflexible way that it prevented them from spending the money for children who might have benefited.