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CBO
PAPER

 
The State Children's
Health Insurance Program


Cover Graphic

Notes 
Enacted as title XXI of the Social Security Act in 1997, the State Children's Health Insurance Program (SCHIP) provides health insurance coverage for uninsured children living in families with income that is modest but too high for them to be eligible for Medicaid. This Congressional Budget Office (CBO) paper—prepared at the request of the Chairman and Ranking Member of the Senate Finance Committee—summarizes the key features of SCHIP, provides information on historical trends in enrollment and federal spending, summarizes the evidence on the effects of the program on children's insurance coverage, and discusses key issues that are likely to arise as the Congress considers reauthorization of the program this year. In keeping with CBO's mandate to provide objective, impartial analysis, this paper makes no recommendations.
Noelia Duchovny and Lyle Nelson of CBO's Health and Human Resources Division prepared the report under the supervision of James Baumgardner and Bruce Vavrichek. Carol Frost provided assistance with the data analysis. Tom Bradley, Jeanne De Sa, Tim Gronniger, Arlene Holen, Donald Marron, Eric Rollins, and Sven Sinclair, all of CBO, provided comments on drafts, as did Jeanne Lambrew of the George Washington University, Anthony T. Lo Sasso of the University of Illinois at Chicago, and Kosali I. Simon of Cornell University. (The assistance of external reviewers implies no responsibility for the final product, which rests solely with CBO.)
John Skeen edited the paper, and Christine Bogusz proofread it. Maureen Costantino designed the cover and prepared the report for publication. Lenny Skutnik produced the printed copies, Linda Schimmel coordinated the print distribution, and Simone Thomas prepared the electronic versions for CBO's Web site.
Peter R. Orszag
Director
May 2007





                


Contents




Eligibility Criteria for Children

Eligibility Criteria for Adults

The Design of Benefits

Cost Sharing and Premiums

Federal Funding for SCHIP

The State Allocation Formula

The Effect of SCHIP on Children's Health Insurance Coverage

Changes in the Number of Uninsured Children

Children's Participation in SCHIP

The Effect of SCHIP on Private Coverage

The Cost of Maintaining the States' Current Programs

Options for Modifying SCHIP

 

Tables

1. Enrollment in the State Children's Health Insurance Program, 1998 to 2006

2. Allotments and Spending Under the State Children's Health Insurance Program, 1998 to 2007

 
Figures

1. Percentage of Children Who Were Uninsured, by Family Income as a Percentage of the Federal Poverty Level, 1996 to 2005

2. CBO's Baseline Projections of Funding and Enrollment in SCHIP, 2007 to 2017

3. CBO's Projections of Funding and Enrollment to Maintain States' Current Programs Under SCHIP, 2007 to 2017
 

Boxes

1. A Brief Overview of Medicaid and the State Children's Health Insurance Program

2. Overview of the Financing Structure for the State Children's Health Insurance Program

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