The number of Hawai'i residents using free health coverage from the state rose 9.1 percent in the past two months and could climb higher as the economy continues to decline, the state Department of Human Services said.

At the end of September, 206,919 adults and children in Hawai'i were enrolled in Med-Quest, the state's health insurance program for the poor, said DHS spokesman Alan Lee Eyerly. There were 189,661 enrolled at the end of July.

"The projection nationally is that the number of uninsured people will rise 5 percent over the next year," said Ken Fink, DHS administrator. "There is already an upward trend in Medicaid use in Hawai'i, and we're prepared and encourage anyone who thinks they may be eligible to apply and take advantage of the free coverage."

The state spent between $550 million and $600 million last year on Med-Quest, its version of Medicaid, and the federal government covered the rest of the $1.2 billion Med-Quest budget. DHS is currently evaluating its budget for next year, Fink said.

The state reported last month that unemployment in Hawai'i had climbed to 4.2 percent, the highest level in more than six years.

"The economy, expanded Med-Quest eligibility and a greater outreach effort have all been factors in the increase in participation," Eyerly said. "You have to look at all the layoffs at Aloha Airlines, Molokai Ranch and other businesses and realize that it was going to increase.

"Many people maybe didn't know before that Med-Quest is free and that it really is a good medical plan. There are a lot of people, a lot of families, who are eligible and may not know it. Everyone should check it out and see if they're eligible."

Fink would like to see the federal government's Medicaid reimbursement to the state returned to its former standard.

"Up until Oct. 1, the federal government would pay 56.5 cents on every dollar spent for Med-Quest and the state paid the rest," Fink said.

"On Oct. 1, the federal government dropped its contribution to 55.11 cents on the dollar. If we just got that 1.4 percent back, it would mean about $18 million less out of the state budget."

Fink gave two examples of Med-Quest eligibility:

• An adult living in the home of a family of four: If the income for that home is less than $48,760 and the person has limited assets, excluding owning a home, that adult is eligible for free Med-Quest coverage.

• Children: "You can earn up to 300 percent of the federal poverty level and your kids can still qualify for free coverage in Hawai'i," Fink said. "In other words, a family of four can earn about $73,000 and still qualify."

Med-Quest programs also can be an alternative for people recently laid off and debating whether to join COBRA plans.

"For myself, the one time I looked at the COBRA program, I thought it was ridiculous how much it cost," Eyerly said. "If you think you're eligible for Medicaid, you should look into it."