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General Information
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Date Created |
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| 09/13/2001 12:31 PM |
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Date Updated |
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| 01/22/2004 06:55 AM |
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What is the State Children’s Health Insurance Program (SCHIP)? |
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Question |
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What is the State Children’s Health Insurance Program (SCHIP)? |
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Answer |
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The Balanced Budget Act of 1997 created a new children’s health insurance program under Title XXI of the Social Security Act called the State Children’s Health Insurance Program (SCHIP). This program enabled States to initiate and expand health insurance coverage for uninsured children. The funds cover the cost of insurance, as well as outreach services to get children enrolled and reasonable costs for administration. Funds must be used to cover previously uninsured children and not to replace existing public or private coverage.
The statute set broad outlines of the program’s structure, and established a partnership between Federal and State governments. States were given broad flexibility in tailoring the programs to meet their own circumstances. States could create or expand their own separate insurance programs, expand Medicaid, or combine both approaches.
States can choose among several benchmark benefit packages, develop a benefit package that is actuarially equivalent to or better than one of the benchmark plans, or use the Medicaid benefit. States also have the opportunity to set eligibility criteria regarding age, income, resources, residency, and duration of coverage within broad Federal guidelines. The Federal role is to provide technical assistance to the states and to ensure that programs meet statutory requirements that are designed to ensure meaningful coverage under the program.
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