The Children’s Health Insurance Program (CHIP) was created as part of the Balanced Budget Act of 1997 (BBA 97) to provide health insurance to children in families with low to moderate incomes who did not qualify for Medicaid but could not afford private insurance.
The program provides states with federal funding to establish and expand their own programs, and gives states greater flexibility in program design compared to Medicaid.
Initially, it was uncertain how many states would participate in CHIP, but by fiscal year (FY) 2000, every state, territory, and the District of Columbia had children enrolled in CHIP-financed coverage. The program has been successful in reducing the number of uninsured children in the United States. In 1997, before CHIP was created, 10 million children were without health insurance. By 2012, fewer than 5 million children were uninsured for more than a year, and by 2016, the number had further decreased to 3.8 million.
While most of the decline in uninsured children was due to increased enrollment in Medicaid, CHIP played an important role in expanding coverage to children in families with slightly higher incomes. The availability of CHIP and associated outreach efforts have been credited with increasing enrollment in both programs.
It has enjoyed bipartisan support since its creation in 1997, and both Republicans and Democrats have worked to extend and fund the program over the years.
While there have been debates and disagreements over funding levels and program design, there is no evidence to suggest that CHIP is currently under attack by Republicans. In fact, in January 2018, Congress passed a six-year extension of CHIP with bipartisan support, despite some disagreements over how to pay for the program.
It’s worth noting that political opinions and priorities can change over time, and it’s possible that some politicians or groups may take positions that are critical of CHIP in the future. In the current environment as a government shut down looms, who really knows what is on the chopping block?
Following Congress’s recent failure (or success, depending on your political leanings) in not extending expiring tax subsidies for Patient Protection and Affordable Care Act (PPACA)
I am going to start 2026 by doing something I rarely do, and that is compliment an insurance company, and United Healthcare at that. As you
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