WASHINGTON, DC - Thanks to U.S. Senator Jack Reed's efforts, Rhode Island is receiving nearly $13 million in federal funding this week to cover shortfalls in its State Children's Health Insurance Program (SCHIP). SCHIP provides health insurance for over 20,000 Rhode Islanders with incomes that are too high to qualify for Medicaid but that cannot afford health insurance on their own. This money, which comes from the U.S. Department of Health and Human Services (HHS) Centers for Medicare and Medicaid Services (CMS), is the first installment of an estimated $18 million commitment Senator Reed secured for the state in the closing days of 2006. "Thousands of Rhode Islanders depend on SCHIP for their health care needs," said Reed. "This program has been a great success. Last year, we were able to negotiate a deal to address SCHIP's immediate funding gaps, and I am pleased this money is now coming to our state to help low-income families get quality, affordable health care." Last December Reed prevented the Senate from wrapping up its legislative business for the year, blocking several key bills until Congress addressed the SCHIP funding shortfall. This move helped alleviate pressure on Rhode Island's state budget by providing $18 million to stave off cuts in the coming months until a long-term solution can be found to address SCHIP's funding needs. The program was facing a total shortfall of about $927 million nationwide, putting 600,000 children in 17 states at risk of losing health insurance in 2007. Reed forged an agreement with his fellow lawmakers that would redistribute leftover fiscal year '04 and fiscal year '05 SCHIP funds in states with excess funds to states that have funding shortfalls in early 2007. Without Reed's efforts, Rhode Island would only have had enough money to maintain coverage through some time in February. Reed's work gives the state needed funds and temporarily averts more drastic measures such as having to increase state funding or cut back RIte Care by reducing eligibility, increasing beneficiary premiums, reducing benefits or reducing provider payments through May 2007. Today CMS announced it is redistributing unused SCHIP funding from fiscal year 2004 to cover shortfalls in five states, including Rhode Island. Rhode Island's share of this round of funding is $12,927,277. A second allotment of funding is scheduled to be released after March 31, 2007. "I was proud to step in last year and help redirect millions of dollars in SCHIP funding to Rhode Island. But that was only a temporary fix. We need to improve the long-term financial health of this vital, bipartisan program," said Reed, who last month joined with Senators Jay Rockefeller (D-WV), Olympia Snowe (R-ME), and Ted Kennedy (D-MA), in introducing the Keep Children Covered Act of 2007. This legislation will finish the job of averting SCHIP fiscal year 2007 shortfalls that are expected in at least 14 states nationwide, including Rhode Island. The Keep Children Covered Act of 2007 would provide the necessary funds for states to keep coverage consistent for those currently enrolled. This legislation is currently pending before the Senate Finance Committee.