States won’t be sanctioned over kids’ health insurance

The Bush administration has announced that states won't be penalized for failing to install restrictions making it harder for middle-income children to participate in a federal-state health insurance program, at least for now. States had been directed to make the changes in their State Children's Health Insurance Program by August 18 or face financial penalties. Among the required changes include that children must be uninsured for one year before they could enroll; and at least 95% of poor children eligible for Medicaid or SCHIP were already in those programs before states covered higher-income children.