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MN gets fed waiver for parents' health insurance

ST. PAUL, Minn. (AP) -- The federal government has given a Minnesota a waiver that will keep 18,000 parents eligible for health insurance.

At issue is Medicaid coverage for families who receive insurance supplemented by the State Children's Health Insurance Program, known as S-CHIP.

The Bush administration opposes using S-CHIP dollars to cover uninsured adults. Minnesota has spent S-CHIP money on adults, but under the waiver will no longer do so. Instead, the state will use Medicaid funds. S-CHIP funds will now be used for some children.

Gov. Tim Pawlenty says the U.S. Department of Health and Human Services granted Minnesota the waiver. It runs through June 30, 2011.

If Minnesota had not received the waiver, it would have lost up to $130 million in federal funding over the next three years.