SCHIP Vs. CHIP

The Children's Health Insurance Program (CHIP), formerly known as the State Children's Health Insurance Program (SCHIP), is an insurance program that provides coverage to children who are not eligible for Medicaid and whose families can't afford private insurance coverage.

Background

• When the U.S. Congress authorized the SCHIP program in 1997, there were about 22 million uninsured children in the United States. Congress allocated $22 billion over the next 10 years to enable states to provide insurance to eligible children, with the states receiving a federal match. The program was extended for two years, until President Obama and Congress reauthorized the program for another 10 years in February 2009. The program was renamed CHIP.

Differences

• One of the key differences in the CHIP program compared to the old SCHIP program is that states are required to spend their federal CHIP allotments within two years to receive a federal match. Also, the new CHIP program allows states to provide coverage for illegal immigrant children and pregnant women in their first five years in the U.S.

Challenges

• According to the League of Women Voters, opponents of the CHIP program cited the fact that the CHIP program was partly funded with an increase in the federal cigarette tax. Also, some opponents argued that the CHIP requirements included some families who had sufficient income to afford private insurance for their children.