WASHINGTON – More than 500 Maine children who would not have been eligible for health insurance will be covered immediately thanks to a boost by the U.S. Department of Health and Human Services.

HHS Secretary Tommy G. Thompson gave the green light to a proposal to raise income eligibility for the State Children’s Health Insurance Program, thrusting the Cub Care program from 185 percent of the federal poverty level, to 200 percent.

The state is eligible to receive nearly $13.4 million in federal funds for fiscal year 2001.

The federal poverty level for 2001 is $17,650 for a family of four, HHS officials report.

Maine operates both a SCHIP Medicaid expansion program and Cub Care, a separate SCHIP program. The newest batch will raise the number of children enrolled to 10,029 statewide.

“President Bush and his administration will work closely with states to ensure flexibility at the local level to get health insurance to children who need it,” Thompson said. “This is just an example of how the federal government can let states make decisions that make sense for them and their citizens.”

Thompson also announced that nine other states were awarded one-year grants totaling $10.2 million to formulate plans to provide health insurance for uninsured citizens. Newly funded states included: Arizona, California, Colorado, Connecticut, Idaho, South Dakota, Texas, Utah and Washington.

The states join 11 others that received funds totaling $13.6 million last year in the initial offering under the program.

“It is vital that we work to expand access to health insurance to all our citizens,” Thompson said. “The grants will help states identify who remains uninsured, why they are uninsured and develop ways to get them the coverage they need.”

SCHIP, a bipartisan effort enacted in 1997, appropriates $24 billion over five years to help states expand coverage to children whose families earn too much for traditional Medicaid but not enough to afford private insurance.

Maine will collect federal matching funds limited to actual expenditures to insure children.

According to HHS, the new Cub Care amendment mandates that families with incomes between 185 percent and 200 percent of poverty must pay a $20 per month premium for one child, with a monthly limit of $40 for two or more kids.

“Maine’s expansion demonstrates how popular this program is with states and how vital it has proven to be for the families enrolled,” Thompson said.