Children’s Health Insurance Program (CHIP)

AAA

DEFINITION of 'Children’s Health Insurance Program (CHIP)'

A medical coverage source for individuals under age 19 whose parents earn too much income to qualify for Medicaid, but not enough to pay for private coverage. Children’s Health Insurance Program coverage varies from state to state, but all states’ CHIP plans cover routine check-ups, immunizations, doctor visits, prescriptions, dental care, vision care, hospital care, laboratory services, X-rays and emergency services. Some states also cover parents and pregnant women.

INVESTOPEDIA EXPLAINS 'Children’s Health Insurance Program (CHIP)'

The Children’s Health Insurance Program is a U.S. federal program implemented in 1997 and administered by the states. Each state names its own program; for example, New York’s is called “Child Health Plus.” The federal government matches funding the states provide, similar to Medicaid. A 2009 program update also made federal funds available to help locate and enroll eligible children not currently served by the program. Many parents whose children would qualify have not applied because they think the enrollment process will be difficult or they won't qualify financially.

In most states, a family of four earning up to $45,000 a year will qualify for CHIP; the limit is higher in some states. It is necessary to apply and be accepted into CHIP to receive coverage. In some cases, children will qualify for children’s Medicaid rather than CHIP. Any adult who lives more than half the time with the child may apply on the child’s behalf.

While some medical services, such as regular check-ups, are free under CHIP, others require a co-payment. In addition, members must pay a monthly premium in some states. However, the premium can’t exceed 5% of annual household income. Enrollment fees and co-pays, if any, may be based on ability to pay.

CHIP helps parents whose employers don’t provide health coverage to obtain coverage for their children. The program makes it more likely that children have a doctor regularly watching over their health.

RELATED TERMS
  1. Uniform Policy Provisions, Health ...

    A provision that states that insurance companies must use standard ...
  2. Universal Health Care Coverage

    An organized healthcare system that provides healthcare benefits ...
  3. Commercial Health Insurance

    A type of health insurance that covers medical expenses and disability ...
  4. National Organization Of Life And ...

    NOLHGA is a voluntary organization of U.S. life- and health-insurance ...
  5. Group Health Insurance Plan

    An insurance plan that provides healthcare coverage to a select ...
  6. Health Insurance

    A type of insurance coverage that pays for medical and surgical ...
Related Articles
  1. Insurance

    Health Insurance Tips For College Students

  2. Insurance

    What You Need To Know About COBRA Health ...

  3. Home & Auto

    Concierge Healthcare: The Pros and Cons ...

  4. Key metrics suggest that it could be time to invest in healthcare facilties.
    Fundamental Analysis

    Investing In Healthcare Facilities

Hot Definitions
  1. Capitulation

    When investors give up any previous gains in stock price by selling equities in an effort to get out of the market and into ...
  2. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  3. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  4. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  5. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  6. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
Trading Center