In August 1997, the Congress created the State Childrens Health Insur. Program (SCHIP) to significantly reduce the number of low-income, uninsured children. This report provides information on the first year of SCHIPs implementation. In particular, it examines the states: (1) initial SCHIP design choices, including the use of the statutory flexibility to design their programs; (2) pursuit of statutory options, particularly extending coverage to adults in families with children; (3) development of innovative outreach strategies to enroll eligible children; & 4) tailoring of strategies to avoid the crowd out of both private insurance & Medicaid coverage by SCHIP. Tables.