# State Children's Health Insurance Program; Reserved Allotments to States for Fiscal Year 1999 and Revised Reserved Allotments to States for Fiscal Year 1998

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## Record

- **Collection:** Federal Register
- **Document type:** Notice
- **Published:** February 8, 1999
- **Citation:** 64 FR 6102

## Text

DEPARTMENT OF HEALTH AND HUMAN SERVICES

Health Care Financing Administration
[HCFA-2014-N]
RIN 0938-AI64

State Children's Health Insurance Program; Reserved Allotments to
States for Fiscal Year 1999 and Revised Reserved Allotments to States
for Fiscal Year 1998

AGENCY: Health Care Financing Administration (HCFA), HHS.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: This notice provides notification of the reserved fiscal year
(FY) 1999 State allotments available to provide Federal funding to
individual States, Commonwealths, and Territories for expenditures in
the new State Children's Health Insurance Program (CHIP) established
under title XXI of the Social Security Act (the Act). This notice also
provides revised reserved State CHIP FY 1998 allotments, which were
originally published in the Federal Register on September 12, 1997. The
notice describes the methodology and process that HCFA uses to
determine the reserved State CHIP allotments in accordance with section
2104 of the Act. These reserved State CHIP allotments are estimates of
States' FY 1998 and FY 1999 title XXI allotments, assuming that each
State were to submit, and receive approval for, a State child health
plan. Under title XXI the amount of State's allotments for a fiscal
year is available for 3 years for States with approved child health
plans.
Established by section 4901 of the Balanced Budget Act of 1997
(Pub. L. 105-33), the State Children's Health Insurance Program
provides Federal matching funds to States to initiate and expand health
insurance coverage to uninsured, low-income children.
Copies: To order copies of the Federal Register containing this
document, send your request to: New Orders, Superintendent of
Documents, P.O. Box 37194, Pittsburgh, PA 15250-7954. Specify the date
of the issue requested and enclose a check or money order payable to
the Superintendent of Documents, or enclose your Visa or Master Card
number and expiration date. Credit card orders can also be placed by
calling the order desk at (202) 512-1800 or by faxing to (202) 512-
2250. The cost for each copy is $8.00. As an alternative, you can view
and photocopy the Federal Register document at most libraries
designated as Federal Depository Libraries and at many other public and
academic libraries throughout the country that receive the Federal
Register.
This Federal Register document is also available from the Federal
Register online database through GPO Access, a service of the U.S.
Government Printing Office. Free public access is available on a Wide
Area Information Server (WAIS) through the Internet and via
asynchronous dial-in. Internet users can access the database by using
the World Wide Web; the Superintendent of Documents home page address
is http://www.access.gpo.gov/su__docs/, by using local WAIS client
software, or by telnet to swais.access.gpo.gov, then login as guest (no
password required). Dial-in users should use communications software
and modem to call (202) 512-1661; type swais, then login as guest (no
password required).

FOR FURTHER INFORMATION CONTACT: Richard Strauss, (410) 786-2019.

SUPPLEMENTARY INFORMATION:

I. General Background on New Legislation

Section 4901 of the Balanced Budget Act of 1997 (BBA), Pub. L. 105-
33, as amended by Pub. L. 105-100, added title XXI to the Social
Security Act (the Act), which was further amended by Pub. L. 105-174.
Title XXI authorized a new State Children's Health Insurance Program
(CHIP) to assist State efforts to initiate and expand child health
assistance to uninsured, low-income children. Child health assistance
is provided primarily for obtaining health benefits coverage through
(1) obtaining coverage that meets requirements specified in the law
under section 2103 of the Act; or (2) expanding coverage under the
State's Medicaid plan under title XIX of the Act; or (3) a combination
of both.
In order to be eligible for Federal matching funds under the CHIP,
States must submit to the Secretary, and receive approval for, a State
child health plan that describes how the State intends to use the funds
provided under title XXI. The plan must meet certain criteria specified
in the statute, which include benefit packages, eligibility standards
and methodologies, coverage requirements, basic and additional services
offered, strategic objectives and performance goals, plan
administration, and evaluations.
The law limits the total amount of Federal funds for the State
Children's Health Insurance Program and specifies the formula that is
to be used to determine an allotment for each State from this total
amount, as described under section III of this notice.

II. Purpose of This Notice

We are issuing this notice to provide notification to States,
Commonwealths, and Territories of the reserved allotments that will be
available to them for FY 1999, and also to provide notification of
revised State CHIP reserved allotments for FY 1998 (that were
originally published in the Federal Register on September 12, 1997),
for child health insurance expenditures if they have an approved State
child health plan under title XXI of the Act, or to claim an enhanced
Federal medical assistance percentage (FMAP) rate for certain CHIP-
related Medicaid expenditures under title XIX of the Act. States,
Commonwealths, and Territories may submit State child health plans to
HCFA for approval, to be effective as early as October 1, 1997. We
believe that this notification at the beginning of a fiscal year is
necessary to enable States, Commonwealths, and Territories to conduct
advance planning and budgeting for title XXI and CHIP-related title XIX
programs.
Section 2104(b) of the Act indicates that ``the Secretary shall
allot to each State * * * with a State child health plan approved under
this title.'' This language requires States to have an approved State
child health plan for the fiscal year in order for the Secretary to
provide an allotment to that State for that fiscal year. If a State
does not have an approved State child health plan for that fiscal year,
the amount of that State's reserved allotment could be unavailable to
that State and could be allotted to States with approved child health
plans.
Pub. L. 105-174, enacted on May 1, 1998, provides that for purposes
of the calculation of allotments, a State child health plan approved by
HCFA on or after October 1, 1998, and before October 1, 1999, must be
treated as having been approved for both FY 1998 and FY 1999. However,
a State's allotment for a fiscal year may only be used for CHIP and
CHIP-related Medicaid expenditures that are allowable under the
approved State child health plan or the Medicaid State plan. Federal
financial participation (FFP) would not be available for expenditures
made in and claimed for periods before the effective date of the
approved State child health plan or the Medicaid State plan.
The reserved allotments for FY 1998 and FY 1999 in this notice were
determined by application of the formula specified in title XXI of the
Act and described in detail in section III of this notice. Section 707
of the Act Making Appropriations for the

[[Page 6103]]

Departments of Labor, Health and Human Services and Education, and
Related Agencies for the Fiscal Year ending September 30, 1999, and For
Other Purposes (``1999 Appropriations Act''), as enacted by section
101(f) of Pub. L. 105-277, requires that the FY 1999 reserved State
CHIP allotments be determined using the same data used in determining
the revised FY 1998 State CHIP allotments. The effect of this statutory
change is to distribute the total funds available for FY 1999 among the
50 States and the District of Columbia in the same proportions as the
total funds were distributed for FY 1998. However, because the total
funds available nationally for allotment to the States and the District
of Columbia for FY 1999 is $19,950,000 million lower than the total
funds available nationally for FY 1998, the actual FY 1999 reserved
allotments for each State and the District of Columbia is slightly
lower than each State's FY 1998 reserved allotment. Final allotments
for each State will be determined in accordance with statutory
requirements. We plan to issue a notice of proposed rulemaking as soon
as possible on the requirements for the allotment and payment process
under title XXI. Although final allotments have not been determined,
under section 2105(e) of the Act, we have authority to make ongoing
payments based on advance estimates of allowable expenditures. At this
time, we intend to make advance payments to States with approved child
health plans based on these reserved allotments. Issues related to the
allotment and payment process, however, will be open for public comment
as part of the rulemaking process.

III. Methodology for Determining Reserved Allotments for States,
Commonwealths, and Territories

This notice specifies in Tables I and II under section IV the
revised reserved FY 1998 allotments, and the reserved FY 1999
allotments, respectively, that would be available to individual States,
Commonwealths, and Territories for child health assistance expenditures
under approved State child health plans, assuming that each State,
Commonwealth, or Territory qualifies for such an allotment. The
reserved FY 1998 allotments were originally published in the Federal
Register on September 12, 1997. As discussed below, the FY 1998
reserved allotments have been recalculated to reflect the way the
Bureau of the Census compiles reported data on the number of low-income
children in each State who have no health insurance in the March
supplements to the Current Population Survey (CPS), and to incorporate
an increase in the title XXI appropriation, applicable only to FY 1998,
as enacted by Pub. L. 105-100 on November 19, 1997.
In accordance with section 707 of the 1999 Appropriations Act, as
enacted by section 101(f) of Pub. L. 105-277, the FY 1999 allotments
contained in this notice were determined using the same data that were
used in determining the revised reserved FY 1998 State CHIP allotments.
We have applied the statutory formula specified in section 2104 of
the Act in determining the reserved allotments for FY 1998 and FY 1999,
as discussed below.
Section 2104(a) of title XXI provides that, for purposes of
providing allotments to the 50 States and the District of Columbia, the
following amounts are appropriated: $4.295 billion for FY 1998; $4.275
billion for each FY 1999 through 2001; $3.150 billion for each FY 2002
through 2004; $4.050 billion for each FY 2005 through 2006 and $5
billion for FY 2007. However, under section 2104(c) of the Act, 0.25
percent of the total amount appropriated each year is available for
allotment to the Territories and Commonwealths of Puerto Rico, Guam,
the Virgin Islands, American Samoa, and the Northern Mariana Islands.
Furthermore, for FY 1999, an additional $32 million was appropriated
for allotment only to the Territories and Commonwealths under section
706 of the 1999 Appropriations Act, as enacted by section 101(f) of
Pub. L. 105-277. This newly appropriated $32 million for the
Commonwealths and Territories for FY 1999 does not reduce the previous
FY 1999 CHIP appropriation ($4.275 billion) and is in addition to 0.25
percent of the total annual appropriated discussed above. The total
amounts are allotted to the Commonwealths and the Territories according
to the following percentages: Puerto Rico, 91.6 percent; Guam, 3.5
percent; the Virgin Islands, 2.6 percent; American Samoa, 1.2 percent;
and the Northern Mariana Islands, 1.1 percent.
Further, under sections 4921 and 4922 of Public Law 105-33, the
total allotment available to the 50 States and the District of Columbia
is reduced by an additional total of $60,000,000; $30,000,000 each for
a special diabetes research program for Type I diabetes and special
diabetes programs for Indians. The diabetes programs are funded from
FYs 1998 through 2002 only.
Therefore, the total amount of the allotment available for the 50
States and the District of Columbia for FY 1998 and FY 1999 was
determined in accordance with the following formula:

ATA =
S2104(a)-T2104(c)-D4921-D4922

ATA = Total amount available for allotment to the 50 States
and the District of Columbia for the fiscal year.
S2104(a) = Total appropriation for the fiscal year indicated
in section 2104(a)of the Act. For FY 1998, this is $4,295,000,000. For
FY 1999, this is $4,275,000,000.
T2104(c) = Total amount available for allotment for the
Commonwealths and Territories; determined under section 2104(c) of the
Act as 0.25 percent of the total appropriation for the 50 States and
the District of Columbia.

For FY 1998, this is:

.0025 x $4,295,000,000 = $10,737,500
For FY 1999, this is:

.0025 x $4,275,000,000 = $10,687,500
D4921 = Amount of grant for research regarding Type I
Diabetes under section 4921 of Pub. L. 105-33. This is $30,000,000 for
FYs 1998 through 2002.
D4922 = Amount of grant for diabetes programs for Indians
under section 4922 of Pub. L. 105-33. This is $30,000,000 for FYs 1998
through 2002.

For FY 1998, the total amount available for allotment to the 50
States and the District of Columbia is $4,224,262,500. This was
determined as follows:

ATA($4,224,262,500) = S2104(a)($4,295,000,000)-
T2104(c)($10,737,500)-D4921 ($30,000,000)-
D4922($30,000,000)

For FY 1999, the total amount available for allotment to the 50
States and the District of Columbia is $4,204,312,500. This was
determined as follows:

ATA($4,204,312,500) = S2104(a)($4,275,000,000)-
T2104(c)($10,687,500)-D4921 ($30,000,000)-
D4922($30,000,000)

The total amount available for allotment to the 50 States and the
District of Columbia is allotted to each State with a child health plan
approved under title XXI based on the formula indicated at section
2104(b)(1) of the Act. The fiscal year allotment for each State with an
approved child health plan is determined on the basis of the product of
two factors, the Number of Children and the State Cost Factor, for each
State divided by the sum of these products over all States.
For FYs 1998 through 2000, the first factor, the Number of
Children, is based

[[Page 6104]]

only on the total number of low-income, uninsured children in the State
with FY 1999 being the only exception, as discussed above. For FY 2001
only, the Number of Children is calculated as the sum of 75 percent of
the low-income, uninsured children in the State, and 25 percent of the
number of low-income children in the State. For FY 2002 and succeeding
years through FY 2007, the Number of Children is calculated as the sum
of 50 percent of the low-income, uninsured children in the State, and
50 percent of the number of low-income in the State.
The Number of Children for each State is developed by the Bureau of
the Census based on the standard methodology used to determine official
poverty status and uninsured status in their annual CPS on these
topics. As part of a continuing formal process between HCFA and the
Bureau of the Census, each fiscal year HCFA obtains the Number of
Children data officially from the Bureau of the Census.
In determining the FY 1998 reserved allotments, as were originally
published in the Federal Register on September 12, 1997, the Number of
Children for each State (provided in thousands) was determined and
provided by the Bureau of the Census based on the arithmetic average of
the number of low-income children and low-income children with no
health insurance as calculated from the three most recent March
supplements to the CPS before the beginning of FY 1998. That is, we
used the most recent official data that were available from the Bureau
of the Census and Bureau of Labor Statistics, respectively, before
September 1, 1997 (that is, through August 31, 1997).
In particular, through August 31, 1997, the only official data
available from the Bureau of the Census on the numbers of children were
data from the 3 March CPSs conducted in March 1994, 1995, and 1996 that
reflected data for the 3 calendar years 1993, 1994, and 1995. In
calculating the FY 1998 reserved allotments, we did not use the Bureau
of the Census data from the March 1997 CPS because those data were not
official and available until a later date, after September 1, 1997. If
we waited for the official data available from the Bureau of the Census
through September 30, 1997, we would have had to delay publication of
the FY 1998 reserved CHIP allotments until after the beginning of FY
1998. Since this was a new program, we believed that for the first year
States needed to be able to plan in advance.
HCFA did not modify or adjust the Bureau of Census compilation of
CPS data on the number of children. However, HCFA is incorporating a
correction made by the Bureau of Census to more accurately reflect
underlying reported CPS data. The Bureau of Census recognized that the
data collected and reported on the numbers of children in the March
Supplements to the CPS were not accurately reflected in the compilation
provided to HCFA for the September 12, 1997, calculation of the FY 1998
reserved allotments. In particular, children who had access to services
through the Indian Health Service (IHS), but no other health insurance
coverage, were identified in the compiled number of children as having
health insurance coverage. The Bureau of Census has adjusted the
compiled numbers of children to reflect the fact that the data shows
that these children do not actually have health insurance coverage. In
light of this adjustment to more accurately reflect reported CPS data,
we have recalculated and are republishing in this notice the FY 1998
reserved allotments. This is consistent with the express incorporation
of this Bureau of Census adjustment into the fiscal year 1999 allotment
calculation under Public Law 105-277.
In accordance with section 707 of the 1999 Appropriations Act, as
enacted by section 101(f) of Pub. L. 105-277, the FY 1999 reserved
allotments are based on the same data as the revised FY 1998 reserved
allotments. Specifically, for FY 1999, the Number of Children for each
State (provided in thousands) was determined and provided by the Bureau
of the Census based on the arithmetic average of the number of low-
income children and low-income children with no health insurance as
calculated from the 1994, 1995, and 1996 March supplements to the CPS,
as adjusted in August 1998. Since the FY 1999 reserved allotments are
based on the same data as the revised FY 1998 reserved allotments, the
data reflect the updated method for accounting for individuals' access
to IHS facilities and services.
The second factor, the State Cost Factor, is based on annual
average wages in the health services industry in the State. The State
Cost Factor for a State is equal to the sum of: .15, and .85 multiplied
by the ratio of the annual average wages in the health industry per
employee for the State to the annual wages per employee in the health
industry for the 50 States and the District of Columbia. The State Cost
Factor for each State was calculated based on such wage data for each
State as reported, determined, and provided to HCFA by the Bureau of
Labor Statistics (BLS) in the Department of Labor. For the FY 1998
reserved allotments, we used the final State Cost Factor data for each
of the most recent 3 years before the beginning of the fiscal year,
through August 31, 1997 available from BLS. For the FY 1999 reserved
allotments, we used the same final State Cost Factor data available
from BLS for 1993, 1994, and 1995, as used in calculating the FY 1998
reserved allotments.
The average of wages per employee for the 50 States and the
District of Columbia was calculated by HCFA directly from the State-
specific data for each State provided by the BLS. This was necessary
because BLS suppressed certain State-specific data in providing HCFA
with the State-specific average wages per health services industry
employee. BLS is required to suppress such data under the Privacy Act.
The State Cost Factor is determined based on the calculation of the
ratio of each State's average annual wages in the health industry to
the National average annual wages in the health care industry. In order
for such National average to appropriately reflect the State-specific
suppressed data, HCFA calculated the National average wages directly
from the State-specific data provided by BLS. As part of a continuing
formal process between HCFA and the BLS, each fiscal year HCFA will
obtain these wage data officially from the BLS.
Under section 2104(b)(4) of the Act each of the 50 States and the
District of Columbia will receive a minimum allotment of $2 million.
Under this provision, to the extent any State's allotment is increased
to $2,000,000 from a lower amount that would otherwise have been
allotted to the State, the allotments to other States and the District
and Columbia must be reduced in a ``pro rata manner'' (but not below
$2,000,000) so that the total amount available for allotment to all
States does not exceed the amount previously available. For FY 1998 and
FY 1999, no State's reserved allotment is below $2,000,000; therefore,
no pro rata adjustment was necessary.
Following is an explanation of how HCFA applied the two State-
related factors specified in the statute to determine the States' child
health plan reserved allotments for FY 1998 and FY 1999. The formula
for determining each State's reserved allotment for FY 1998 and FY 1999
of the total available allotment is:
[GRAPHIC] [TIFF OMITTED] TN08FE99.001

SAi = Allotment for a State.

[[Page 6105]]

Ci = Number of Children. This is the number of certain low-
income children in a State as officially reported, defined, and
provided to HCFA by the Bureau of the Census. For FY 1998 and FY 1999,
this is the number of children under age 19 with no health insurance
whose family income is at or below 200 percent of the poverty line for
a family of the same size. (section 2104(b)(2)(B))
SCFi = The State cost factor for a State (section
2104(b)(1)(A)(ii)). This is equal to:
.15 + .85 x (Wi/WN) (section 2104(b)(3)(A)).
Wi = Certain annual average wages per health industry
employee for a State.
WN = Certain annual wages per health industry employee for
the 50 States and the District of Columbia.

The annual wages per employee for a State or for all States for a
fiscal year is equal to the average of such wages for employees in the
health industry, as reported by the Bureau of Labor Statistics of the
Department of Labor.

(Ci x SCFi) = The sum of the products
of Ci x SCFi for each State (section
2104(b)(1)(B)).
ATA = Total amount available for allotment to all
States for the fiscal year. For FY 1998, this is $4,224,262,500. For FY
1999, this is $4,204,312,500.

Section 2104(e) of the Act requires that the amount of a State's
allotment for a fiscal year be available to the State for a total of 3
years, the fiscal year for which the State child health plan is
approved and 2 years following. Section 2104(f) of the Act requires the
Secretary to establish a process for redistribution of the amounts of
States' allotments that are not expended during the 3-year period to
States that have fully expended their allotments. HCFA will soon issue
a proposed rule that will address the redistribution process and
propose to incorporate the process in Federal regulations.
In accordance with section 2104(b) and (c) of the Act, the total
allotment for all States for each fiscal year is available to the 50
States and District of Columbia, the Commonwealths, and the
Territories. Although the statute precludes the Secretary from making
an allotment to a specific State until it has an approved State child
health plan, because of the statutory provisions for redistribution of
unused amounts of allotments, the availability of allotments for 3
years, and the potential for retroactive effective dates of State child
health plans back to October 1, 1997, we believe it is necessary to
establish and publish these reserved allotment amounts for each fiscal
year so that States can plan appropriately for the operation of their
State children's health insurance programs under title XXI, effective
as early as October 1, 1997. No payments may be made from these
allotments until a State has an approved State child health plan under
title XXI.
In developing the reserved allotment amounts for FY 1998 and FY
1999, we applied the following principles, for which we will be
inviting public comment during the rulemaking process.
For each fiscal year for FYs 1998 through 2007, an
allotment amount will be reserved for all 50 States and the District of
Columbia and for the Commonwealths and Territories, regardless of
whether every State, Commonwealth, or Territory has submitted and the
Secretary has approved a State child health plan. This will provide
States with the flexibility and time to develop their programs and
submit their State child health plans.
The formula for ``reserving'' an allotment amount for each
State will be the same as the formula contained at section 2104(b) of
the Act (with the only qualification being for FY 1999, as discussed
above). The reserved amount is an estimate of the State's title XXI
allotment upon submission and approval of the State's child health
plan.
Under sections 2101(b)(2) and 2105(a) of the Act, no
payment of Federal funds from a State's allotment is available for
expenditures under a State's title XXI program unless the State has an
approved State child health plan. Therefore, States may be at risk for
expenditures made under a title XXI child health plan that is
submitted, but not yet approved.
Section 706 of the 1999 Appropriations Act, as enacted by section
101(f) of Pub. L. 105-277, provided for FY 1999 only, an additional $32
million available for allotment only to the Commonwealths and
Territories. Therefore, the total available allotment to the
Commonwealths and Territories in FY 1999 is $42,687,500 (that is,
$32,000,000 plus $10,687,500 (.25 percent of the FY 1999 appropriation
of $4,275,000,000)).

IV. Table of Reserved State Children's Health Insurance Program
Allotments for FY 1998 and FY 1999

Key to Tables I and II
------------------------------------------------------------------------
Column Description
------------------------------------------------------------------------
Column A = Name of State, Commonwealth, or Territory.
Column B = Number of Children. The Number of Children for
each State (provided in thousands) was
determined and provided by the Bureau of the
Census based on the arithmetic average of the
number of low-income children and low-income
children with no health insurance as
calculated from the 1994, 1995, and 1996 March
supplements to the Current Population Survey,
as adjusted in August 1998. These data
represent the number of people in each State
under 19 years of age whose family income is
at or below 200 percent of the poverty
threshold appropriate for that family, and who
are reported to be not covered by health
insurance. The Number of Children for each
State was developed by the Bureau of the
Census based on the standard methodology used
to determine official poverty status and
uninsured status in their annual Current
Population Surveys on these topics.
For FYs 1998 through 2000, the Number of
Children is equal to the number of low-income
children in each State with no health
insurance for the fiscal year. For FY 2001,
the Number of Children is equal to the sum of
75 percent of the number of low-income
children in the State with no health insurance
and 25 percent of the number of low-income
children in the State. This is also based on a
3-year average of Census data. For FY 2002 and
succeeding years, the Number of Children is
equal to the sum of 50 percent of the number
of low-income children in the State with no
health insurance and 50 percent of the number
of low-income children in the State. This is
also based on a 3-year average of Census data.
Column C = State Cost Factor. The State Cost Factor for a
State is equal to the sum of: .15, and .85
multiplied by the ratio of the annual average
wages in the health industry per employee for
the State to the annual wages per employee in
the health industry for the 50 States and the
District of Columbia. The State Cost Factor
for each State was calculated based on such
wage data for each State as reported,
determined, and provided to HCFA by the BLS in
the Department of Labor for 1993, 1994, and
1995.

[[Page 6106]]

Column D = Product. The Product for each State was
calculated by multiplying the Number of
Children in Column B by the State Cost Factor
in Column C. The sum of the Products for all
50 States and the District of Columbia is
below the Products for each State in Column D.
The Product for each State and the sum of the
Products for all States provides the basis for
allotment to States.
Column E = Percent Share of Total. This is the calculated
percentage share for each State of the total
allotment available to the 50 States and the
District of Columbia. The Percent Share of
Total is calculated as the ratio of the
Product for each State in Column D to the sum
of the products for all 50 States and the
District of Columbia below the Products for
each State in Column D.
Column F = Allotment. This is the State Child Health
Program allotment for each State,
Commonwealth, or Territory. For each of the 50
States and the District of Columbia, this is
determined as the Percent Share of Total in
Column E for the State multiplied by the total
amount available for allotment for the 50
States and the District of Columbia for the
fiscal year.
For each of the Commonwealths and Territories,
the allotment is determined as the Percent
Share of Total in Column E multiplied by the
total amount available for allotment to the
Commonwealths and Territories. For the
Commonwealths and Territories, the Percent
Share of Total in Column E is specified in
section 2104(c) of the Act. For FY 1999, the
Commonwealth and Territories were allotted an
additional $32 million, which is added to the
total allotment available to the territories
for FY 1999 determined by the formula
described above. The total amount is then
allotted to the Commonwealths and Territories
according to the percentages specified in
section 2104 of the Act.
------------------------------------------------------------------------

State Children's Health Insurance Program Reserved Allotments for Fiscal Year: 1998
----------------------------------------------------------------------------------------------------------------
Number of Percent
State children State cost Product share of Allotment \1\
(000) factor totals \3\
(A) (B) (C) (D) (E) (F)
----------------------------------------------------------------------------------------------------------------
ALABAMA.................................. 154 0.9510 146.46 2.04 $85,975,213
ALASKA................................... 11 1.0669 11.74 0.16 6,889,296
ARIZONA.................................. 190 1.0472 198.97 2.76 116,797,799
ARKANSAS................................. 92 0.8871 81.61 1.13 47,907,958
CALIFORNIA............................... 1,281 1.1365 1,455.92 20.23 854,644,807
COLORADO................................. 72 0.9888 71.19 0.99 41,790,547
CONNECTICUT.............................. 53 1,1237 59.55 0.83 34,959,075
DELAWARE................................. 13 1.0553 13.72 0.19 8,053,463
DISTRICT OF COLUMBIA..................... 16 1.2857 20.57 0.29 12,076,002
FLORIDA.................................. 444 1.0368 460.32 6.40 270,214,724
GEORGIA.................................. 214 0.9923 212.36 2.95 124,660,136
HAWAII................................... 13 1.1722 15.24 0.21 8,945,304
IDAHO.................................... 31 0.8726 27.05 0.38 15,879,707
ILLINOIS................................. 211 0.9892 208.73 2.90 122,528,573
INDIANA.................................. 131 0.9169 120.12 1.67 70,512,432
IOWA..................................... 67 0.8253 55.30 0.77 32,460,463
KANSAS................................... 60 0.8704 52.22 0.73 30,656,520
KENTUCKY................................. 93 0.9146 85.06 1.18 49,932,527
LOUISIANA................................ 194 0.8934 173.31 2.41 101,736,841
MAINE.................................... 24 0.8863 21.27 0.30 12,486,977
MARYLAND................................. 100 1.0498 104.98 1.46 61,627,358
MASSACHSETTS............................. 69 1.0576 72.97 1.01 42,836,231
MICHIGAN................................. 156 1.0001 156.02 2.17 91,585,508
MINNESOTA................................ 50 0.9675 48.37 0.67 28,395,980
MISSISSIPPI.............................. 110 0.8675 95.43 1.33 56,017,103
MISSOURI................................. 97 0.9075 88.03 1.22 51,673,123
MONTANA.................................. 24 0.8333 20.00 0.28 11,740,395
NEBRASKA................................. 30 0.8440 25.32 0.35 14,862,926
NEVADA................................... 43 1.2046 51.80 0.72 30,407,067
NEW HAMPSHIRE............................ 20 0.9760 19.52 0.27 11,458,404
NEW JERSEY............................... 134 1.1241 150.62 2.09 88,417,899
NEW MEXICO............................... 117 0.9169 107.28 1.49 62,972,705
NEW YORK................................. 399 1.0914 435.47 6.05 255,626,409
NORTH CAROLINA........................... 138 0.9815 135.45 1.88 79,508,462
NORTH DAKOTA............................. 10 0.8587 8.59 0.12 5,040,741
OHIO..................................... 205 0.9617 197.16 2.74 115,734,364
OKLAHOMA................................. 170 0.8588 145.99 2.03 85,699,061
OREGON................................... 67 0.9947 66.65 0.93 39,121,663
PENNSYLVANIA............................. 200 1.0005 200.9 2.78 117,456,521
RHODE ISLAND............................. 19 0.9580 18.20 0.25 10,684,422
SOUTH CAROLINA........................... 110 0.9843 108.27 1.50 63,557,819
SOUTH DAKOTA............................. 17 0.8559 14.55 0.20 8,541,224
TENNESSEE................................ 115 0.9799 112.69 1.57 66,153,082
TEXAS.................................... 1,031 0.9275 956.25 13.29 561,331,521

[[Page 6107]]

UTAH..................................... 46 0.8977 41.30 0.57 24,241,159
VERMONT.................................. 7 0.8604 6.02 0.08 3,535,445
VIRGINIA................................. 118 0.9862 116.38 1.62 68,314,915
WASHINGTON............................... 85 0.9352 79.49 1.10 46,661,213
WEST VIRGINIA............................ 45 0.8937 40.21 0.56 23,606,744
WISCONSIN................................ 75 0.9229 69.22 0.96 40,633,039
WYOMING.................................. 15 0.9858 13.14 0.18 7,711,638
----------------------------------------------------------------------------------------------------------------
TOTAL STATES ONLY.................... ........... ........... 7,196.17 100.00 4,224,262,500
----------------------------------------------------------------------------------------------------------------
ALLOTMENTS FOR COMMONWEALTHS AND
TERRITORIES \2\
PUERTO RICO.............................. ........... ........... ........... 91.60 9,835,550
GUAM..................................... ........... ........... ........... 3.50 375,813
VIRGIN ISLANDS........................... ........... ........... ........... 2.60 279,175
AMERICA SAMOA............................ ........... ........... ........... 1.20 128,850
N. MARIANA ISLANDS....................... ........... ........... ........... 1.10 118.113
----------------------------------------------------------------------------------------------------------------
TOTAL COMMONWEALTHS AND TERRITORIES
ONLY................................ ........... ........... ........... 100.00 10,737,500
----------------------------------------------------------------------------------------------------------------
TOTAL STATES AND COMMONWEALTH AND
TERRITORIES......................... ........... ........... ........... ........... 4,235,000,000
----------------------------------------------------------------------------------------------------------------
Footnotes:
(1) Total amount available for allotment to the 50 States and the District of Columbia is $4,224,262,500;
determined as the fiscal year appropriation ($4,295,000,000) reduced by the total amount available for
allotment to the Commonwealths and Territories ($10,737,500) and amounts for Special Diabetes Grants
($60,000,000) under sections 4921 and 4922 of BBA.
(2) Total amount available for allotment to the Commonwealths and Territories is $10,737,500; determined as .25
percent of the fiscal year appropriation ($4,295,000,000).
(3) Percent share of total amount for allotment to the Commonwealths and Territories is as specified in section
2104(c) of the Social Security Act.

State Children's Health Insurance Program Reserved Allotments for Fiscal Year: 1999
----------------------------------------------------------------------------------------------------------------
Number of Percent
State children State cost Product share of Allotment \1\
(000) factor total \3\
(A) (B) (C) (D) (E) (F)
----------------------------------------------------------------------------------------------------------------
ALABAMA.................................. 154 0.9510 146.46 2.04 $85,569,176
ALASKA................................... 11 1.0669 11.74 0.16 6,856,760
ARIZONA.................................. 190 1.0472 198.97 2.76 116,246,196
ARKANSAS................................. 92 0.8871 81.61 1.13 47,681,702
CALIFORNIA............................... 1,281 1.1365 1,455.92 20.23 850,608,561
COLORADO................................. 72 0.9888 71.19 0.99 41,593,182
CONNECTICUT.............................. 53 1.1237 59.55 0.83 34,793,973
DELAWARE................................. 13 1.0553 13.72 0.19 8,015,429
DISTRICT OF COLUMBIA..................... 16 1.2857 20.57 0.29 12,018,971
FLORIDA.................................. 444 1.0368 460.32 6.40 268,938,576
GEORGIA.................................. 214 0.9923 212.36 2.95 124,071,402
HAWAII................................... 13 1.1722 15.24 0.21 8,903,057
IDAHO.................................... 31 0.8726 27.05 0.38 15,804,712
ILLINOIS................................. 211 0.9892 208.73 2.90 121,949,905
INDIANA.................................. 131 0.9169 120.12 1.67 70,179,422
IOWA..................................... 67 0.8253 55.30 0.77 32,307,161
KANSAS................................... 60 0.8704 52.22 0.73 30,511,738
KENTUCKY................................. 93 0.9146 85.06 1.18 49,696,709
LOUISIANA................................ 194 0.8934 173.31 2.41 101,256,366
MAINE.................................... 24 0.8863 21.27 0.30 12,428,004
MARYLAND................................. 100 1.0498 104.98 1.46 61,363,309
MASSACHUSETTS............................ 69 1.0576 72.97 1.01 42,633,928
MICHIGAN................................. 156 1.0001 156.02 2.17 91,152,976
MINNESOTA................................ 50 0.9675 48.37 0.67 28,261,873
MISSISSIPPI.............................. 110 0.8675 95.43 1.33 55,752,550
MISSOURI................................. 97 0.9075 88.03 1.22 51,429,086
MONTANA.................................. 24 0.8333 20.00 0.28 11,684,948
NEBRASKA................................. 30 0.8440 25.32 0.35 14,792,733
NEVADA................................... 43 1.2046 51.80 0.72 30,263,463
NEW HAMPSHIRE............................ 20 0.9760 19.52 0.27 11,404,289
NEW JERSEY............................... 134 1.1241 150.62 2.09 88,000,326

[[Page 6108]]

NEW MEXICO............................... 117 0.9169 107.28 1.49 62,675,303
NEW YORK................................. 399 1.0914 435.47 6.05 254,419,158
NORTH CAROLINA........................... 138 0.9815 135.45 1.88 79,132,966
NORTH DAKOTA............................. 10 0.8587 8.59 0.12 5,016,935
OHIO..................................... 205 0.9617 197.16 2.74 115,187,783
OKLAHOMA................................. 170 0.8588 145.99 2.03 85,294,328
OREGON................................... 67 0.9947 66.65 0.93 38,936,902
PENNSYLVANIA............................. 200 1.0005 200.09 2.78 116,901,807
RHODE ISLAND............................. 19 0.9580 18.20 0.25 10,633,962
SOUTH CAROLINA........................... 110 0.9843 108.27 1.50 63,257,653
SOUTH DAKOTA............................. 17 0.8559 14.55 0.20 8,500,886
TENNESSEE................................ 115 0.9799 112.69 1.57 65,840,660
TEXAS.................................... 1,031 0.9275 956.25 13.29 558,680,510
UTAH..................................... 46 0.8977 41.30 0.57 24,126,675
VERMONT.................................. 7 0.8604 6.02 0.08 3,518,748
VIRGINIA................................. 118 0.9862 116.38 1.62 67,992,282
WASHINGTON............................... 85 0.9352 79.49 1.10 46,440,845
WEST VIRGINIA............................ 45 0.8937 40.21 0.56 23,495,256
WISCONSIN................................ 75 0.9229 69.22 0.96 40,441,141
WYOMING.................................. 15 0.8758 13.14 0.18 7,675,218
----------------------------------------------------------------------
TOTAL STATES ONLY.................... ........... ........... 7,196.17 100.00 4,204,312,500
----------------------------------------------------------------------
ALLOTMENTS FOR COMMONWEALTHS AND
TERRITORIES:\2\
PUERTO RICO.......................... ........... ........... ........... 91.60 39,101,750
GUAM................................. ........... ........... ........... 3.50 1,494,063
VIRGIN ISLANDS....................... ........... ........... ........... 2.60 1,109,875
AMERICAN SAMOA....................... ........... ........... ........... 1.20 512,250
N. MARIANA ISLANDS................... ........... ........... ........... 1.10 469,563
----------------------------------------------------------------------
TOTAL COMMONWEALTHS AND TERRITORIES ONLY. ........... ........... ........... 100.00 42,687,500
----------------------------------------------------------------------
TOTAL STATES AND COMMONWEALTH AND
TERRITORIES............................. ........... ........... ........... ........... 4,247,000,000
----------------------------------------------------------------------------------------------------------------
Footnotes:
(1) Total amount available for allotment to the 50 States and the District of Columbia is $4,204,312,500;
determined as the fiscal year appropriation ($4,275,000,000) reduced by the total amount available for
allotment to the Commonwealths and Territories ($10,687,500) and amounts for Special Diabetes Grants
($60,000,000) under sections 4921 and 4922 of BBA.
(2) Total amount available for allotment to the Commonwealths and Territories is $42,687,500; determined as
$10,687,500 (.25 percent of $4,275,000,000, the fiscal year appropriation) plus $32,000,000.
(3) Percent share of total amount available for allotment to the Commonwealths and Territories is as specified
in section 2104(c) of the Social Security Act.

V. Impact Statement

HCFA has examined the impact of this notice as required by
Executive Order 12866. Executive Order 12866 directs agencies to assess
all costs and benefits of available regulatory alternatives and, when
rules are necessary, to select regulatory approaches that maximize net
benefits (including potential economic environments, public health and
safety, other advantages, distributive impacts, and equity). We believe
that this notice is consistent with the regulatory philosophy and
principles identified in the Executive Order.
This notice merely provides notification of the reserved FY 1998
and FY 1999 State CHIP allotments available to provide Federal funding
to individual States, Commonwealths, and Territories for expenditures
in the new Children's Health Insurance Program and the assumption and
methodology that HCFA used to determine these reserved allotments. The
formula for State allotments is specified in the statute. This notice
by itself has no economic impact. Final State CHIP allotments for each
State will be calculated using the statutory formula and may vary from
these reserved amounts depending upon the number of States that submit
approved State plans under title XXI. (As noted above, the allotment
process will be set forth in more detail in future rulemaking.)
We believe this notice will have an overall positive impact by
informing States of the extent to which they will be permitted to
expend funds under approved State child health plans in FY 1998 and FY
1999. States will be able to conduct advance planning necessary for
implementation of the State Child Health Insurance Program if they
choose, beginning October 1, 1997.
In accordance with the provisions of Executive Order 12866, this
notice was reviewed by the Office of Management and Budget.

(Section 1102 of the Social Security Act (42 U.S.C. 1302)

(Catalog of Federal Domestic Assistance Program No. 00.000, State
Children's Health Insurance Program)

Dated: December 18, 1998.
Nancy Ann Min DeParle,
Administrator, Health Care Financing Administration.

Dated: January 5, 1999.
Donna E. Shalala,
Secretary.
[FR Doc. 99-2859 Filed 2-5-99; 8:45 am]
BILLING CODE 4120-01-P

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/fr%3A99-2859. Public record. Not legal advice.