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Federal grant helps provide N.C. families' health insurance : Vicky Eckenrode

Uninsured families in North Carolina could find health coverage through a program the state will start after receiving a grant from the federal government, officials said Monday.


North Carolina was among 13 states awarded a State Health Access Program grant, Gov. Bev Perdue's office announced.

The state will receive more than $17 million over five years from the U.S. Department of Health and Human Services.

The money will be used to run a low-cost, limited benefit plan available for qualifying parents, but not individuals or couples without children.

To qualify, uninsured families must be at or below 125 percent of the federal poverty line. For a family of four that means making $27,563 or less under this year's guidelines.

The parents also must have enrolled or applied for coverage for their children, either through Medicaid, the state's Health Choice for Children program or private insurance.

David Kochman, a spokesman for Perdue, said the governor campaigned on expanding coverage for children and pointed to research that showed that goal was more likely if parents also had access to health insurance.

"One of the biggest steps toward universal coverage for children involves extending coverage to their parents," Perdue said in a statement. "With this grant award, North Carolina can focus on making an affordable health care option for our uninsured, working parents and kids."

The federal grant's first installment of more than $1.2 million will arrive this year and be used to get the pilot program started.

Program officials will need to work out details, such as the benefits package offered to participants, who "will be expected to pay a modest premium and small co-payments," according to the governor's office.

Kochman said those premium costs will be determined as the program is developed during the next few months, but he added they would be significantly more affordable than other alternatives.

He said roughly 1,500 families a year will be covered under the program, which will be funded almost entirely by the federal grant.

The N.C. Office of Rural Health and Community Care and the N.C. Division of Medical Assistance will administer the program.

After the first year, the plan is slated to receive $4 million annually for the next four years.

Later into the program, there are plans to work with private insurers to create a limited benefit plan for small businesses.