Explaining the Children's Health Insurance Program - CHIP:

As the United States continues to experience skyrocketing rates of uninsured children, the Children's Health Insurance Program or CHIP was introduced in an effort to provide these children with the health care they need. In 1997, Congress first passed this measure, which required that individual states meet the needs of the population of uninsured children.

Each state now has a State Children's Health Insurance Program or SCHIP. Different states may have slightly different interpretations, but here is an overview of the coverage and requirements for CHIP.

Eligibility Requirements:

1. The child must be under the age of nineteen. 2. They must not be eligible for Medicaid. 3. The income of the family may not be greater than 200% of the federal poverty level.

If your child meets these requirements, they will be considered as eligible for SCHIP. Your state may have different requirements, but generally, these are the minimum requirements. In addition, your state may require your residence within the state for a specific amount of time during the year.

Available Coverage

There are typically five different levels of deductibles, $500, $1000, $1500, $2500 and $5000. You will be able to select which deductible you feel that your family can meet. If your child has a pre-existing condition, there is usually a six-month waiting period for coverage to begin on care for this condition.

The plans include PPO type coverage and require the services of a physician that is part of this preferred provider network. By using the preferred provider, you will have access to a greater amount of covered health care options. CHIP also has coverage for prescription drugs, making it a great alternative for children who have been diagnosed with a condition requiring regular medication.

In recent years, CHIP has been expanded to provide coverage for people who have been denied insurance from insurance companies, people who have lost their jobs and group policies and have not been able to afford a new insurance policy and people with specific health conditions that are not eligible for Medicaid.

How Much Does it Cost?

Typically, the premiums for CHIP coverage for children are approximately 50% of the national standard premiums for children's insurance. Adults can expect to pay 135% of the national standard average. Although this is not free insurance, CHIP is a way that children, low-income families and people with serious health conditions can obtain health insurance at a lower costs. For people who previously had difficulty in obtaining health insurance due to a pre-existing condition, CHIP is making all the difference in receiving the care that they need.

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