The Shriners Hospitals for Children will offer free medical care for up to 500 working-class children from Georgia whose treatment would otherwise be funded through the state health insurance plan.

The Shriner's charity offer is expected to save the state $1.3 million annually on the state insurance program called PeachCare, according to a statement from the office of Gov. Sonny Perdue.

Officials said the Shriners are responding to financial shortages last year in the Georgia program, which covers children in families who do not qualify for Medicaid but cannot afford health insurance.

"The Shriners are happy to provide these services at no charge to their families or the state of Georgia," said Ralph Semb, board chairman for Shriners.

Shriners Hospitals' network of pediatric specialty hospitals focuses on orthopedic conditions, burn injuries, spinal cord injury rehabilitation, and cleft lip and palate repair.

Eligible children would be treated at Shriners Hospitals' pediatric centers in Greenville, S.C., and Tampa, Fla. Each child treated in a Shriners Hospital will free up funds in the PeachCare program to provide preventative health care to the children of Georgia families.

Last month, Georgia officials announced that an infusion of federal dollars has made PeachCare safe for another year. The program will have enough funding to cover the 250,000 children now enrolled and to grow by up to 40,000 children, said state Health Department Commissioner Dr. Rhonda Medows.