CHIP programs
are a partnership between federal and state governments.
Children with health insurance are more likely to do better in school, miss fewer days of class, and are more likely to have better overall health than those without health insurance, according to the Virginia Coalition for Children's Health. In addition, children without health insurance are more likely to suffer long-term health consequences from untreated but routine childhood illness such as an ear infection, according to the Coalition. State Children's Health Insurance Programs (CHIP) help ensure that children whose parents can not afford insurance, but do not qualify for other federal aid, have access to health insurance.
History
Congress created the State Children's Health Insurance Program (SCHIP) as part of the Balance Budget Act of 1997, which was signed into law by President Bill Clinton. The SCHIP program was designed to help states provide health-insurance coverage for children whose parents made too much to qualify for Medicaid and too little to purchase private health insurance on their own. In 2009, Congress passed the Children's Health Insurance Program Re-authorization Act (CHIPRA), which was signed into law by President Barack Obama. The legislation, which changed the program's name to CHIPRA, renewed the program and expanded the program's eligibility requirements. Under the new law, the number of children eligible for CHIP increased from 7 million to 11 million, according to the Centers for Medicaid and Medicare.
Federal and State Partnership
CHIP program is a partnership between federal and state governments. Under CHIPRA, and its predecessor SCHIP, states have flexibility to design their own programs as long as programs meet federal requirements. States are also responsible for a share of funding. However, under CHIPRA, the federal government matching rate for fiscal year 2009 was 72 percent. For example, for every $1 a state spends on its CHIP program, the federal government provides $2.57, according to Families USA, a non-profit health insurance advocacy group.
Eligibility Rules
Since states design CHIP programs, eligibility requirements will vary depending on location. However, the federal government outlines overall eligibility requirements that must be met in order to receive the full federal-funding match. Under CHIPRA, states may not cover children whose parents make more than three times the federal poverty level, according to Families USA. In addition, starting January 1, 2010, CHIPRA requires that states verify citizenship documentation before providing coverage.
Apply
Individuals interested in applying to a CHIP program for their children should apply in their individual state. Each state, U.S. territory and the District of Columbia has a designated person and office responsible for administering the CHIP program, according to the Centers for Medicaid and Medicare.
Coverage Expansion
Under CHIPRA, states are also required to provide dental coverage and mental-health parity under their CHIP programs. For dental care, states must provide a plan that is equal to the Federal Employee Health Benefit Program (FEHBP) or a plan equal to coverage provided to a state employee, according to Families USA.
CHIPRA Improvements
The CHIPRA legislation also includes several improvements to state CHIP programs. They include a $25 million demonstration project to fight childhood obesity, new quality measures for children's health coverage, and $5 million to develop a model for children's electronic medical records, according to Families USA.
