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. Substandard Health Annuity

    An insurance product that can be purchased by a person with a ...
Related Articles
  1. Health Insurance Tips For College Students
    Insurance

    Health Insurance Tips For College Students

  2. What You Need To Know About COBRA Health ...
    Insurance

    What You Need To Know About COBRA Health ...

  3. Concierge Healthcare: The Pros and Cons ...
    Home & Auto

    Concierge Healthcare: The Pros and Cons ...

  4. Investing In Healthcare Facilities
    Fundamental Analysis

    Investing In Healthcare Facilities

Hot Definitions
  1. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  2. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  3. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  4. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
  5. Call Risk

    The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem ...
  6. Parity Price

    When the price of an asset is directly linked to another price. Examples of parity price are: 1. Convertibles - the price ...
Trading Center