[Federal Register Volume 66, Number 120 (Thursday, June 21, 2001)]
[Notices]
[Pages 33257-33264]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-15577]
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DEPARTMENT OF HEALTH AND HUMAN SERVICES
Health Care Financing Administration
[HCFA-2124-N]
RIN 0938-AK52
State Children's Health Insurance Program (SCHIP); Redistribution
and Continued Availability of Unexpended SCHIP Funds From the
Appropriation for FY 1998
AGENCY: Health Care Financing Administration (HCFA), HHS.
ACTION: Notice.
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SUMMARY: This notice announces the application of new statutory
provisions concerning the redistribution and availability of unexpended
funds appropriated for the fiscal year (FY) 1998 for the State
Children's Health Insurance Program under title XXI of the Social
Security Act. It sets forth the amounts available for each of the 50
States, the District of Columbia, and the Commonwealths and Territories
from the FY 1998 appropriation for a second period of availability
under the statutory formula. It specifies amounts of allotments that
may remain available (``retained allotments'') to the States to which
those amounts were originally allotted during the initial period, and
the amounts of allotments that are redistributed from the States to
which they were allotted during the initial period to be available to
other States (``redistributed allotments''). This notice implements
section 801 of the Medicare, Medicaid and SCHIP Benefits
[[Page 33258]]
Improvement and Protection Act (BIPA) (enacted as part of Pub. L. 106-
554 on December 21, 2000).
FOR FURTHER INFORMATION CONTACT: Richard Strauss, (410) 786-2019.
SUPPLEMENTARY INFORMATION:
I. Background
Title XXI of the Social Security Act (the Act) sets forth the State
Children's Health Insurance Program (SCHIP) to enable States, the
District of Columbia, and specified Commonwealths and Territories to
initiate and expand health insurance coverage to uninsured, low-income
children. In this notice, unless otherwise indicated, the use of the
terms ``State'' and ``States,'' refers to any or all of the 50 States,
the District of Columbia, and the Commonwealths and Territories. States
may implement SCHIP through a separate State program under title XXI of
the Act, an expanded program under title XIX of the Act, or a
combination of both. Under section 2104 of the Act, the SCHIP
allotments for a fiscal year (FY) are available to match expenditures
under an approved State child health plan for a 3-fiscal year ``period
of availability,'' including the fiscal year for which the allotment
was provided. After the initial period of availability, the amount of
unspent allotments is subject to a second period of availability. With
the exception described below for the allotments made in FYs 1998 and
1999, allotments unspent in the initial period of availability are to
be redistributed from States that did not fully spend these allotments
to States that fully spent their allotments for that fiscal year. The
Medicare, Medicaid and SCHIP Benefits Improvement and Protection Act of
2000 (BIPA), enacted as part of Pub. L. 106-554 on December 21, 2000,
amended title XXI of the Act, in part by establishing new requirements
for the second period of availability of amounts of FYs 1998 and 1999
allotments unspent during the initial period of availability. These
requirements limit the redistribution of unspent allotments to States
that fully spent their FY 1998 or 1999 allotments (redistributed
amounts). These requirements also provide that amounts of unspent
allotments not redistributed as a result of these limits would remain
available to States that did not fully expend their FY 1998 or 1999
allotments (retained allotments). These requirements prescribe a
methodology and process for determining the FY 1998 and FY 1999
allotment redistribution and retention amounts.
II. Provisions of This Notice
This notice announces the application of the new statutory
provisions concerning the redistribution and continued availability of
unexpended funds appropriated for FY 1998 for the SCHIP under title XXI
of the Act. It sets forth the FY 1998 unexpended amounts available for
redistribution or continued availability for the States. Section 2104
of the Act provides an allotment for each fiscal year for Federal
matching payments for an initial 3-year period for the States.
Specifically, section 801 of BIPA added the new section 2104(g) to the
Act to provide for a methodology to redistribute or continue
availability of all unexpended amounts for FYs 1998 and 1999 at the end
of the initial 3-year period.
Section 2104 of the Act requires the Secretary to calculate
allotments for each State with an approved State child health plan
based on available appropriated funds for each fiscal year. All States
had approved plans in order to have access to their final FY 1998 SCHIP
allotments, which were published on May 24, 2000 in the Federal
Register (65 FR 33634). The final rule setting forth the methodologies
and procedures to determine the allotment of Federal funds for each
fiscal year and the grant award and payment process was also published
on May 24, 2000 in the Federal Register (65 FR 33616).
BIPA amended the SCHIP statute to add a new section 2104(g) to the
Act, which required the Secretary to redistribute limited amounts of
the unexpended allotments for FYs 1998 and 1999 to States that had
fully expended their allotments for those years, and extended the
availability of remaining unexpended allotments for those years, in
accordance with a specified formula. This notice sets forth the results
of the statutory formula to the unexpended allotments for FY 1998, and
describes the methodology for the redistribution and continued
availability of unexpended SCHIP allotments. A later notice will be
published to address the unexpended allotments for FY 1999.
III. Application of the Provisions of Section 2104(g) of the Act to
the Unexpended FY 1998 SCHIP Allotments To Determine the
Redistribution and Continued Availability of Allotments for Each
State
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 matching
allowable State expenditures for a 3-year initial period of
availability; the fiscal year for which the funds are allotted, and the
two following fiscal years. For FY 1998, the 3-year initial period of
availability is October 1, 1997 through September 30, 2000. With the
exception of the methodology specified in BIPA for treating unspent FY
1998 and 1999 allotments, section 2104(f) requires redistribution of
the entire amount of unspent allotments after the initial period of
availability has expired. Section 2104(e) of the Act provides that
redistributed funds are available for matching State expenditures
through the end of the fiscal year in which they are reallotted. Before
BIPA, the FY 1998 redistribution funds would have been available
through the end of FY 2001; that is, through September 30, 2001. Any
redistributed funds for the fiscal year that remained unexpended at the
end of the fiscal year in which they were reallotted would have
reverted to the Federal Treasury.
BIPA did not repeal or delete sections 2104(e) and (f) of the Act.
However, BIPA added a new section 2104(g) of the Act that established a
formula for redistributing and continuing the availability of
unexpended allotments for FYs 1998 and 1999 and references the
provisions of sections 2104(e) and (f) of the Act. This formula
replaces the redistribution that otherwise would have been required
under section 2104(f) of the Act.
Section 2104(g) of the Act requires the Secretary to redistribute
and continue availability of the unexpended FYs 1998 and 1999
allotments under section 2104(f) of the Act. Section 2104(g) also
provides that both FYs 1998 and 1999 redistribution amounts and FYs
1998 and 1999 retained amounts, under sections 2104(g)(1)(B)(ii) and
2104(g)(2)(A)(i) of the Act, respectively, shall remain available to
the States through the end of FY 2002; that is, through September 30,
2002.
Section 2104(g)(2)(C) of the Act provides an exception to otherwise
applicable limits on outreach expenditures for States that did not
fully expend their FY 1998 allotments during the initial period of
availability. Section 2105(c)(2) of the Act provided for a ``10-percent
fiscal year limit'' for certain expenditures, including outreach,
administration, health services initiatives, and other child health
assistance expenditures. This limit provides that Federal matching
funds are not available for expenditures other than child health
assistance for targeted low-income children in excess of 10-percent of
the total expenditures during a fiscal year. Section 2104(g)(2)(C) of
the
[[Page 33259]]
Act allows States that did not fully spend their FY 1998 allotment in
the initial availability period to use up to 10-percent of the amount
of the retained FY 1998 allotment for outreach activities approved by
the Secretary without those expenditures being applied against the
State's 10-percent fiscal year limit. In this notice we refer to this
provision of section 2104(g)(2)(C) of the Act as the ``BIPA outreach
allowance'' or ``new outreach allowance.'' This BIPA outreach allowance
is distinguished from the limit in section 2105(c)(2) of the Act, which
we refer to in this notice as the ``10-percent fiscal year limit.''
There are some differences in the application of the 10-percent
fiscal year limit under section 2105(c)(2) of the Act and the new
outreach allowance under section 2104(g)(2) of the Act. Under section
2105(c)(2) of the Act, the 10-percent fiscal year limit is applied to a
State's total expenditures for a fiscal year. In this regard, ``total
expenditures'' refers to both the State and Federal share portions of
the expenditures. The calculation of the 10-percent fiscal year limit
is set forth in 42 CFR 457.618. However, the new outreach allowance
under section 2104(g)(2) of the Act, as added by BIPA, is equal to 10-
percent of the FY 1998 retained allotment amounts, which are only in
Federal share amounts. Furthermore, the BIPA outreach allowance is
available only if the State's FY 1998 retained allotment is available.
That is, once a State's retained allotment is exhausted, the BIPA
outreach allowance is no longer available, even if the amount of
outreach expenditures claimed is less than the outreach allowance of
10-percent of the FY 1998 retained allotment.
We have established a process under which we will track, through
the Medicaid and SCHIP budget and expenditure reporting system, the
Federal share amounts of title XXI outreach expenditures against the
new outreach allowance. If the Federal share amounts of a State's
retained allotment outreach expenditure claims exceed this new outreach
allowance, the total expenditures (State and Federal share) associated
with the excess Federal share amounts will be applied against the 10-
percent fiscal year limit. In addition, the total outreach expenditures
associated with outreach claims made after a State's retained allotment
amounts are exhausted will be applied against the 10-percent fiscal
year limit (whether or not the new outreach allowance was met).
The availability of retained allotment funds and the BIPA outreach
allowance is determined in accordance with requirements related to the
ordering of expenditures. Section 2105(a)(2) of the Act, as amended by
BIPA, requires that expenditures be applied against a State's available
fiscal year SCHIP allotment amounts in the following order:
(1) Title XIX SCHIP related expenditures for which payment is made
at the enhanced Federal medical assistance percentage (FMAP) (section
2105(a)(1)(A) of the Act);
(2) Title XIX expenditures for medical assistance provided during a
presumptive eligibility period under section 1920A of the Act (section
2105(a)(1)(B) of the Act);
(3) Child health assistance for targeted low-income children in the
form of providing health benefits coverage that meets the requirements
of section 2103 (section 2105(a)(1)(C) of the Act); (4)(a) SCHIP
expenditures applicable to the 10-percent fiscal year limit (not
including outreach and administrative expenditures) (section
2105(a)(1)(D)(i and ii) of the Act); (4)(b) Outreach expenditures
(section 2105(a)(1)(D)(iii) of the Act); and (4)(c) Administration
expenditures (section 2105(a)(1)(D)(iv) of the Act).
To implement the BIPA outreach allowance, claims for Federal
matching funds for outreach expenditures will be compared to the new
outreach allowance. If, under this comparison, the Federal share of
outreach expenditures is less than or equal to, but not greater than,
the new outreach allowance, none of these outreach expenditures will be
applied against the 10-percent fiscal year limit; they will only serve
to reduce the new outreach allowance. The following example illustrates
this:
Example 1. The State's FY 1998 retained allotment is $20 million.
Therefore, the State's outreach allowance would be $2 million (10
percent of $20 million). On the first quarterly expenditure report for
FY 2001, the State claims $2 million in outreach expenditures (Federal
share). In this example, assume at least $2 million of retained
allotment funds, based on claims of expenditures other than outreach,
remain available. Since the outreach claims are $2 million, none of the
outreach expenditures would apply against the 10-percent fiscal year
limit; but instead would be applied to reduce the new outreach
allowance. In this case, if the outreach claims were exactly $2
million, there would be $0 remaining of the BIPA outreach allowance ($2
million outreach allowance minus $2 million in outreach claims).
If the Federal share of claims for outreach expenditures is greater
than the BIPA outreach allowance, the total (State and Federal share)
expenditures in excess of the Federal share amount above the new
outreach allowance will be applied against the 10-percent fiscal year
limit. Example 2 illustrates this:
Example 2. The State's FY 1998 retained allotment is $20 million.
Therefore, the State's outreach allowance would be $2 million (10
percent of $20 million). In this example, assume there are at least $2
million of available retained allotment funds, based on claims of
expenditures other than outreach. On the first quarterly expenditure
report for FY 2001, the State claims $2,650,000 in outreach
expenditures (Federal share). These claims exceed the outreach
allowance by $650,000 ($2,650,000 in outreach claims minus the $2
million outreach allowance). We will apply the outreach expenditure
claims first to exhaust the outreach allowance. The total expenditures
(State and Federal shares) associated with the remaining $650,000 in
outreach claims that are in excess of the new outreach allowance would
then be subject to the 10-percent fiscal year limit, as long as the
State has not exceeded the 10-percent fiscal year limit. Therefore, the
amount of outreach claims up to the outreach allowance ($2 million)
would not be included in expenditures applied against the 10-percent
fiscal year limit. Assuming an enhanced Federal matching rate of 65
percent, the claim for Federal matching in excess of the outreach
allowance would represent $1 million ($650,000 divided by 65 percent,
the State's enhanced FMAP). The $1 million in total outreach
expenditures would be applied against the 10-percent fiscal year limit.
Example 3a, illustrates the case in which program expenditures are
applied first to exhaust the State's available FY 1998 retained
allotment amount, resulting in the new outreach allowance being
unavailable. Example 3b, illustrates the case in which the BIPA
outreach allowance is used by the application of outreach expenditures
first to exhaust the new outreach allowance. The only difference
between Examples 3a and 3b is the order of submission in the categories
of expenditures; the amounts of the expenditures are the same. The
result is that in Example 3a, all of the outreach expenditures must be
applied against the 10-percent fiscal year limit; in Example 3b, none
of the outreach expenditures are applied against the 10-percent fiscal
year limit.
[[Page 33260]]
Example 3a. The State's retained FY 1998 allotment amount is $20
million; therefore, the BIPA outreach allowance is $2 million (10
percent of $20 million). On the first quarter expenditure report for FY
2001, the State claims $21 million in Federal matching for SCHIP
program expenditures. On the second quarter expenditure report for FY
2001, the State claims $2 million in Federal matching for outreach
expenditures. The first quarter FY 2001 claims of $21 million in
program expenditures would be applied first against, and thereby
exhaust, the State's FY 1998 retained allotment of $20 million. Since
the retained allotment amounts are no longer available, the BIPA
outreach allowance would also no longer be available. Therefore, all $2
million of the total second quarter FY 2001 outreach expenditures
(State and Federal share) would be applied against the State's FY 2001
10-percent fiscal year limit. In this example, if the State's enhanced
FMAP was 65 percent, approximately $3.1 million ($2 million divided by
65 percent), representing the State and Federal shares of the $2
million Federal share claim, would be applied against the State's FY
2001 10-percent fiscal year limit.
Example 3b. Assume the same facts as in Example 3a, except that the
order of submission of expenditures, by quarter, is reversed; that is,
$2 million in outreach expenditures are submitted on the first quarter
expenditure report for FY 2001, and $21 million in program expenditures
are submitted on the second quarter expenditure report for FY 2001. In
this example, the $2 million in outreach expenditures would be applied
first against the new outreach allowance, reducing it to $0; these
outreach expenditure claims would also be applied against the State's
$20 million FY 1998 retained allotment, thereby reducing it to $18
million ($20 million minus $2 million). Since the outreach expenditures
were not in excess of the BIPA outreach allowance, none of the outreach
expenditures would be applied against the State's FY 2001 10-percent
fiscal year limit. The $21 million in program expenditure claims
included in the second quarter expenditure report for FY 2001 would
then be applied against the remaining retained allotment amounts ($18
million), and the $3 million excess would be applied against the next
available SCHIP allotment.
In general, States' expenditures will be applied against the FY
1998 redistribution and retained amounts in accordance with existing
SCHIP regulations on allotments (42 CFR parts 447 and 457). These
regulations, however, do not directly address the treatment of
redistributed allotments because they do not make clear whether these
expenditures will be applied to these allotments based on the fiscal
year of the initial allotment, the fiscal year of the redistribution,
or the fiscal year of the allotment whose expiration date matches the
redistribution. This notice permits States the option to decide the
order of application of expenditures against the redistribution amounts
and other available fiscal year allotment amounts. Under this option, a
redistribution State may have a maximum of four possible choices for
the order of the application of FY 1998 redistribution funds in FY
2001, depending on what other fiscal year allotments are available in
FY 2001: (1) Before FY 1999 allotments, (2) after FY 1999 and before FY
2000 allotments, (3) after FY 2000 and before FY 2001 allotments, and
(4) after FY 2001 allotments.
We believe that States should be afforded the flexibility to decide
whether redistributed funds would be used before or after other
available allotment funds to allow them to optimize the use of such
funds. Therefore, in implementing the BIPA legislation, we offered
States that will receive an FY 1998 redistribution the option of
choosing the order of when it would be expended during FY 2001 among
the other available allotments during FY 2001. All of the
redistribution States have responded to us with their decision
regarding this option. Under this option, once a State chooses the
order of the FY 1998 redistribution amounts, it cannot change that
order at a later date.
Both the redistribution amounts and the retained amounts for FY
1998 will be available for allowable SCHIP expenditures reported for
the 2-year extension period of October 1, 2000 through September 30,
2002. This will ensure that the redistribution and retained allotment
amounts will be available for SCHIP expenditures for the entire period,
October 1, 2000 through September 30, 2002, even though this notice is
being published after October 1, 2000.
We have made provisions on the Form HCFA-21C, Allocation of Title
XIX and Title XXI Expenditures to the SCHIP Fiscal Year Allotment,
which is used for tracking States' expenditures against their
allotments, to include the States' FY 1998 redistributed and retained
amounts. The redistributed and retained amounts will be automatically
entered on this form and the Medicaid and SCHIP expenditure system will
automatically apply expenditures reported on the quarterly expenditure
reports for the period of October 1, 2000 through September 30, 2002 to
the FY 1998 redistributed and retained amounts available through
September 30, 2002. Except as provided above in terms of the States'
options with respect to the redistribution amounts, expenditures
reported by States during this period will be applied first against any
available FY 1998 redistribution or retained amounts before they will
be applied against any other available FY allotments or future FY
redistribution and retained amounts, in accordance with the SCHIP
regulations published on May 24, 2000 in the Federal Register (65 FR
33616).
IV. Determination of Redistribution or Continued Availability of
Unexpended FY 1998 Allotments
In Table 1 of this notice, we set forth the amount of unexpended
allotments as of December 15, 2000, as specified in section 2104(g) of
the Act. We also set forth the retained amounts that, under the
statutory formula, are subject to continued availability by States that
did not fully expend their FY 1998 allotments, and the amounts that are
redistributed for availability to States that fully expended their FY
1998 allotments. The formula for determining the redistributed and
retained amounts of the FY 1998 SCHIP allotments is described below.
Establishing the Amount of Unexpended FY 1998 Allotments. The
amount of unexpended FY 1998 allotments is established by comparing the
total reported by each State for the 3-year period of availability on
its 12 quarterly expenditure reports for the period, as submitted and
certified to HCFA as of December 15, 2000, to the amounts of the
State's final FY 1998 allotment, as published on May 24, 2000 in the
Federal Register (65 FR 33634).
Based on States' expenditure reports submitted and certified
through December 15, 2000, the total amount of unexpended FY 1998 SCHIP
allotments is $2,033,508,296.
Time Frames for Expenditure Reports. To determine unexpended
allotments during the initial period of availability, or to identify
States that have fully expended their allotments, section 2104(g)(3) of
the Act provides that the Secretary use expenditures reported as of
December 15, 2000 on the Form HCFA-64 or HCFA-21, as approved by the
Secretary. By December 15, 2000, all States did report and certify
their FY 2000 fourth quarter expenditure reports (representing the last
of the 12 quarterly expenditure reports for the 3-year period of
availability for FY 1998).
[[Page 33261]]
Expenditures reflected in Table 1 below were taken from our Medicaid
and State Children's Health Insurance Program Budget and Expenditure
System (MBES/CBES) ``masterfile,'' which represent the State's official
certified SCHIP and Medicaid expenditure reporting system records.
Redistribution for the States and the District of Columbia. Section
2104(g)(1)(i)(I) of the Act specifies the FY 1998 redistribution for
the 50 States and the District of Columbia that have fully expended
their FY 1998 allotments. Specifically, the redistribution amounts are
equal to these States' ``excess'' expenditures during the FY 1998
period of availability; this amount is the difference between the
States' total reported applicable expenditures for the period FYs 1998
through 2000, and the States' FY 1998 SCHIP allotments.
Redistribution for the Commonwealths and Territories. Section
2104(g)(1)(ii) of the Act specifies the FY 1998 redistribution for the
Commonwealths and Territories that have fully expended their FY 1998
allotments. Under this provision, first the total Commonwealths and
Territories redistribution amount is calculated by multiplying the
total amount of the allotments available for redistribution and
continued availability by 1.05 percent; for the FY 1998 redistribution
calculation, this amount is $21,351,837 (1.05 percent of
$2,033,508,296). Second, only those Commonwealths and Territories that
have fully expended their FY 1998 allotments will receive an amount
equal to a specified percentage of the 1.05 percent amount; that
percentage is determined by dividing the Commonwealth or Territory's FY
1998 SCHIP allotment by the total of all the jurisdictions' FY 1998
allotments.
Continued Availability of Unexpended FY 1998 Allotments. Section
2104(g)(2)(B) of the Act specifies the formula for determining the
amount of the unexpended FY 1998 allotments for continued availability
to States. Under section 2104(g)(2)(B) of the Act, first the total
amount for continued availability for all States is determined. The
total amount for continued availability is calculated by subtracting
the redistribution amounts from the total amount available for
redistribution or continued availability described above. Next, a
percentage is calculated by dividing the total retained amounts by the
total amount available for redistribution or continued availability.
Finally, each State's retained amount is calculated by multiplying this
percentage by the amount of the State's unexpended FY 1998 SCHIP
allotment.
V. Table of SCHIP FY 1998 Redistribution and Continued Availability
of Unexpended FY 1998 Allotments
A description of the formula used to determine the amount of the
unexpendedFY 1998 SCHIP allotments for redistribution or continued
availability is described below. Following the description is Table 1,
which presents each State's FY 1998 SCHIP allotment redistribution or
retained amount.
Redistribution. A total of $4,235,000,000 was allotted nationally
for FY 1998, representing $4,224,262,500 in allotments to the 50 States
and the District of Columbia, and $10,737,500 in allotments to the
Commonwealths and Territories. Based on the 12 quarterly expenditure
reports for the FY 1998 3-year period of availability, which were
submitted and certified by December 15, 2000, 12 States and all of the
Commonwealths and Territories fully expended their FY 1998 allotments.
Thirty-nine States including the District of Columbia did not fully
expend their FY 1998 allotments. For the 39 States, including the
District of Columbia, that did not fully expend their FY 1998
allotments, their total FY 1998 allotments were $3,401,470,924, and
their total expenditures through the end of the FY 1998 3-year period
of availability were $1,367,962,628. Therefore, the amount available
for redistribution for FY 1998 is $2,033,508,296 ($3,401,470,924 minus
$1,367,962,628).
In accordance with the redistribution calculation for FY 1998
described above, of the total $2,033,508,296 available from the FY 1998
allotments, $698,855,508 is needed for redistribution for 12 States,
and $21,351,837 is needed for redistribution to the Commonwealths and
Territories. Therefore, a total of $720,207,345 is needed for
redistribution. As a result, $1,313,300,951 ($2,033,508,296 minus
$720,207,345) is the total amount for continued availability to the 39
States, including the District of Columbia. Both the $720,207,345
redistribution amount and the $1,313,300,951 retained amounts will
remain available through the end of FY 2002.
Key to Table 1--Calculation of the SCHIP FY 1998 Redistribution and
Continued Availability of the Unexpended FY 1998 Allotments
Column/Description
Column A = State. Name of State, District of Columbia, the
Commonwealth or Territory.
Column B = FYs 98-00 Expenditures, as Reported and Certified by
States, and Approved by HCFA, By December 15, 2000. This column
contains the cumulative expenditures for the 3-year period of
availability for FY 1998 (October 1, 1997 through September 30, 2000),
as reported and certified by all States by December 15, 2000.
Column C = FY 1998 Allotment. This column contains the FY 1998
SCHIP allotments for all States, which were published on May 24, 2000
in the Federal Register (65 FR 33634).
Column D = Unexpended FY 1998 Allotment Amounts. This column
contains the amounts of unexpended FY 1998 SCHIP allotments for States
that did not fully expend the allotments during the 3-year period of
availability for FY 1998 (FYs 1998 through 2000), and is equal to the
difference between the amounts in Column C and Column B. For States
that did fully expend their FY 1998 allotments during the period of
availability, the entry in this column is ``NA.'' The total of the
amounts in this column indicated at the bottom of Column D
($2,033,508,296) represents the total amount available for
redistribution and continued availability for FY 1998.
Column E = Redistributed Amounts. This column contains the amounts
of States' unexpended FY 1998 SCHIP allotments that are being
redistributed to those States that have fully expended their FY 1998
allotments. For the States that have fully expended their FY 1998 SCHIP
allotments, the amount in Column E is the difference between Column B
and Column C. This represents, as applicable, the amount that each
State's cumulative expenditures for FYs 1998 through 2000 exceeded its
FY 1998 allotment. For the 12 States that have fully expended their FY
1998 allotments, the FY 1998 redistribution amounts total $698,855,508.
For the Commonwealths and Territories that have fully expended their FY
1998 allotments, the amounts in Column E represents their respective
proportionate shares of $21,351,837 based on their FY 1998 allotments
(1.05 percent of the total amount for redistribution and continued
availability of $2,033,508,296). For those States, Commonwealths and
Territories that did not fully expend
[[Page 33262]]
their FY 1998 allotments during the period of availability, the entry
in Column E is ``NA.''
Column F = Continued Allotment Availability. For the States that
did not fully expend their FY 1998 allotments, this column contains the
amounts of the States' FY 1998 unexpended allotments after the
application of the proportionate reduction to account for the total
redistribution amounts needed for the States that did fully expend
their FY 1998 allotments. As indicated at the top of Column F, the
proportionate reduction is approximately 64.6 percent. This percentage
is multiplied by the unexpended amounts of the States' FY 1998
allotments in Column D; the result is the amount that remains available
of the States' unexpended FY 1998 allotments. As indicated at the
bottom of Column F, the total amount that remains available of the
unexpended FY 1998 allotments is $1,313,300,951.
Column G = Unexpended Amounts Used in Redistribution. For the
States that did not fully expend their FY 1998 allotments, this column
contains the amounts of the States' FY 1998 unexpended allotments that
were used in the redistribution in Column E; these amounts are no
longer available to these States. The amount in Column G is equal to
the difference between Columns D and F. For States that did fully
expend their FY 1998 allotments, the entry in Column G is ``NA.''
BILLING CODE 4120-01-P
[[Page 33263]]
[GRAPHIC] [TIFF OMITTED] TN21JN01.010
BILLING CODE 4120-01-C
[[Page 33264]]
VI. Impact Statement
We have examined the impact of this notice as required by Executive
Order (EO) 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, environmental, public health
and safety, other advantages, distributive impacts, and equity). The
Regulatory Flexibility Act (RFA) requires agencies to analyze options
for regulatory relief of small businesses. For purposes of the RFA,
small entities include small businesses, nonprofit organizations and
government agencies. This announcement is the result of a statutory
formula that does not involve any agency discretion or policy.
The Unfunded Mandates Reform Act of 1995 requires that agencies
prepare an assessment of anticipated costs and benefits before
publishing any notice that may result in an annual expenditure by
State, local, and tribal governments, in the aggregate, or by the
private sector, of $100 million or more (adjusted each year for
inflation) in any one year. Because participation in the SCHIP program
on the part of States is voluntary, any payments and expenditures
States make or incur on behalf of the program that are not reimbursed
by the Federal Government are made voluntarily. This notice will not
create an unfunded mandate on States, tribal, or local governments.
Therefore, we are not required to perform an assessment of the costs
and benefits of these regulations.
Under Executive Order 13132, Federalism, we have reviewed this
notice and determined that it does not significantly affect States'
rights, roles, and responsibilities.
Low-income children will benefit from payments under this program
through increased opportunities for health insurance coverage.
We believe this notice will have an overall positive impact by
informing States, the District of Columbia, and Commonwealths and
Territories of the extent to which they are permitted to expend funds
under their child health plans using the FY 1998 allotment
redistribution and retained amounts.
In accordance with the provisions of Executive Order 12866, this
notice was not 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: March 19, 2001.
Michael McMullan,
Acting Deputy Administrator, Health Care Financing Administration.
Dated: May 27, 2001.
Tommy G. Thompson,
Secretary.
[FR Doc. 01-15577 Filed 6-20-01; 8:45 am]
BILLING CODE 4120-01-P