The Children’s Health Insurance Program (CHIP) offers low-cost coverage to children in some families that don’t qualify for Medicaid. Because states have flexibility to design their own program within Federal guidelines, the benefits of CHIP vary by state and by the type of CHIP program.

CHIP serves uninsured children up to age 19 in families with incomes that are too high to qualify them for Medicaid. States have broad discretion in setting their income eligibility standards, and eligibility varies from state to state.

The program is funded jointly by the states and the federal government  through a formula based on the Medicaid Federal Medical Assistance Percentage (FMAP). To encourage states to expand their coverage programs for children, Congress created an “enhanced” federal matching rate for CHIP.   The rate is generally about 15 percentage points higher than the Medicaid rate of about 71% nationally.

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Children’s Health Insurance Program (CHIP) –