The U.S. federal program that provides health coverage for children in low-income families is CHIP, the Children’s Health Insurance Program.
CHIP was created in 1997 as a federal-state partnership for children whose family incomes are too high to qualify for Medicaid but who may still be unable to afford private insurance. The program is administered through state plans under federal rules, so eligibility levels, enrollment procedures, premiums, and benefits can vary by state. CHIP generally covers children through age 18 or 19, depending on the state and program arrangement.
CHIP grew out of bipartisan legislation supported by Senator Ted Kennedy and Senator Orrin Hatch. President Bill Clinton signed the Balanced Budget Act of 1997 on 5 August 1997, establishing the program under Title XXI of the Social Security Act. It was originally widely known as SCHIP, or the State Children’s Health Insurance Program; later legislation shortened the name to CHIP.
Medicaid is the main program for many people with very low incomes, while Medicare primarily serves older adults and certain disabled people. The Affordable Care Act is a broad health-reform law, not a children’s insurance program. CHIP therefore occupies an important coverage gap between Medicaid eligibility and unaffordable private plans.