Funding Available for States to Implement Steps to a Healthier US

The U.S. Department of Health and Human Services (HHS) has announced the availability of fiscal year (FY) 2003 funds for a five-year cooperative agreement program to implement Secretary Tommy Thompson’s Prevention Initiative for Americans entitled Steps to a HealthierUS.

Contact: Michael Fierro
Health Policy Studies NGA Center for Best Practices

The purpose of Steps is to enable communities to reduce the burden of chronic disease, including: preventing diabetes among populations with pre-diabetes; increasing the likelihood that persons with undiagnosed diabetes are diagnosed; reducing complications of diabetes; preventing and reducing overweight and obesity; and reducing the complications of asthma.

Steps will work to achieve these outcomes through the following targeted measures:

* Improving nutrition;

* Increasing physical activity;

* Preventing tobacco use and exposure, targeting adults who have diabetes or who live with persons with asthma;

* Increasing tobacco cessation, targeting adults who are diabetic or who live with persons with asthma;

* Increasing use of appropriate health care services;

* Improving the quality of care; and

* Increasing effective self-management of chronic diseases and associated risk factors.

In FY 2003, $15 million was allocated to Steps and approximately $13,650,000 is available to begin to fund Steps projects. The following 3 entities are eligible and will be awarded accordingly:

* Local Health Departments, in collaboration with Local Education Agencies: $9,000,000; 9 to 12 Large City and Urban Community applications;

* State Health Departments in collaboration with State Education Agencies: $4,400,000; up to 4 State-Coordinated Small City and Rural Community application; and

* Tribes: $250,000; one Tribal application.

Tribes, large cities and urban communities may apply directly for Steps funds or may be included in a state-coordinated application, however they may not do both. Letters of Intent must be received by June 1, and applications for Steps projects are due July 15.
Related Links:

* Steps to a HealthierUS: Request for Applications (RFA) Summary http://www.nga.org/cda/files/050703HEALTHIERUS.PDF

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HHS Grants Available to States for High Risk Insurance Pools

Contact: Jennifer O’Connor
Health Policy Studies NGA Center for Best Practices

The Department of Health and Human Services (HHS) has announced the availability of $80 million in grants for states that provide health insurance to residents who cannot get conventional health coverage because they are too sick. The grants would be used by states to offset losses they may incur operating high-risk pools, which are typically state-created non-profit associations that offers health coverage to individuals with serious medical conditions. Enrollment in these pools is growing, with more than 153,000 individuals enrolled in state pools.

The HHS grants will make it more affordable for states to expand access to health care through high risk pools for the uninsured. Individuals who benefit from these pools usually have a history of health problems that make it extremely difficult to find affordable health coverage in the individual market. The funding will be awarded over two years, as authorized in the Trade Adjustment Assistance Reform Act (TAA) of 2002. To be eligible, a state must have a "qualified" high-risk pool that meets the criteria specified in the TAA and must follow such rules as capping premiums at no higher than 150 percent of the standard charge in the state. States may be eligible for a grant that matches up to 50 percent of the losses incurred in the operation of the risk pools. Funds will be distributed based on the number of uninsured individuals in each state and the Center for Medicare & Medicaid Services (CMS) will administer the HHS program.

To date, 22 states have high-risk pools that meet the "qualified" criteria. In November 2002, HHS also announced the availability of grants of up to $1 million each for states to use as seed money to establish high-risk pools. A total of $20 million is available under that program. Information about this new program and how states may apply for a grant will be included in a final rule with comment period to be published May 2 in the Federal Register. More information about risk pools is available online at the CMS website.

Related Links:

* High Risk Insurance Pool Grants
http://www.cms.hhs.gov/riskpool/