Enacted in the 1997 Balanced budget Act as title XXI of the Social Security Act, CHIP is a federal-state matching program of health care 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 a combination of both). The federal matching rate for CHIP services (on average, 70 percent) is higher than that for Medicaid (on average at least 57 percent), but the federal allotment to each state for CHIP services is capped at a specified amount each year.
A state administered program funded partly by Federal government which allows states to expand health coverage to uninsured low income children not previously eligible for Medicaid.
Also referred to as SCHIP ("S" for "state"). This legislation was brought about by the passage of Title XXI, as part of the Balanced Budget Act of 1997.This insurance program is designed for families who earn too much money to qualify for Medicaid health care, yet cannot afford to buy private insurance. The parents in some of these families have jobs that do not offer health insurance for children. Other parents' jobs offer health insurance, but the insurance is so expensive that families cannot afford it.