January 16, 2004

A Granholm Administration request to improve health care coverage for underinsured adults was approved today by the U.S. Department of Health and Human Services.

The new Adult Benefit Waiver (ABW) program will allow the state to expand health insurance benefits to childless adults with family incomes at or below 35 percent of the federal poverty level.

Over the course of the five-year demonstration of the ABW, 62,000 adults who currently have limited access to health insurance will now have expanded coverage.

“Through this innovative new program, we have ensured that more Michigan citizens, especially our most vulnerable, will now have increased health insurance coverage,” said Governor Jennifer M. Granholm. “We are extremely pleased that the federal government listened to all of our rationale and granted approval for this worthwhile program that will ultimately benefit the entire state of Michigan.”

The ABW converts the State Medical Program (SMP) to an SCHIP funded program. Previously, the SMP was a state-funded program that served adults aged 21 to 64 that were not eligible for Medicaid.

Adults enrolled in ABW will now receive expanded benefits, including, inpatient and outpatient visits, physician's surgical and medical services, laboratory and X-ray services, pharmacy, and mental health and substance abuse services, Granholm said.

Michigan’s Department of Community Health had initially submitted to the federal government on April 4, 2003. Granholm also pointed out that Michigan’s congressional delegation, on a bi-partisan basis, was instrumental in helping representatives of the Bush Administration understand Michigan’s need for the waiver.

“Without the persistence of Michigan members of Congress on both sides of the aisle, this waiver may not have become reality,” Granholm said. “I truly appreciate the efforts of several key members of Michigan’s congressional delegation. Their hard work over the course of the last several months has improved the lives of thousands of Michigan citizens.”

Michigan is the ninth state to receive a federal waiver to expand access to health care coverage. New Mexico, Oregon, Illinois, Colorado, New Jersey, Maine, Arizona and California had been previously granted waivers.

“The expansion of this program will markedly improve access to health care across the state of Michigan,” said Janet Olszewski, Director of the Michigan Department of Community Health. “MDCH has worked tirelessly with the federal government to achieve this important milestone in improving health coverage for at-risk individuals.”