Grants to states to cover children with family incomes up to 200 percent of the federal poverty level, or 50 percent above existing eligibility, whichever is higher.
Enacted in the 1997 Balanced Budget Act as Title XXI of the Social Security Act, CHIP is a federal-state matching program of health coverage for uninsured low-income children. In contrast to Medicaid, CHIP is a block grant to the States; eligible low-income children have no individual entitlement to a minimum package of health care benefits. Children who are eligible for Medicaid are not eligible for CHIP. States have the option of administering CHIP through their Medicaid programs or through a separate program (or combination of both). The federal matching rate for CHIP services is higher than that for Medicaid, but the federal allotment to each state for CHIP services is capped at a specified amount each year.
A federal-state program enrolling children from families that earn too much to qualify for Medicaid but not enough to afford private health insurance.