12 Feb 2018

Everything You Need to Know About the Children’s Health Insurance Program

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Everything You Need to Know About the Children’s Health Insurance Program

It appears a crisis has been averted for the time being. With health insurance and care continually in flux due to the politicized nature of our times, many have lost sight of why we have insurance in the first place.

Insurance offers protection against rising costs and unexpected expenses. Yet some of the most vulnerable within our communities, children from low-income families, rarely can afford or are provided such protections.

That’s where the Children’s Health Insurance Program, or CHIP, comes into play. CHIP sets out to provide health insurance to children that would not otherwise have such protections.

What is CHIP?

Now, CHIP is a little more in-depth than that. The program aims to fill a gap in the health insurance marketplace. If a family makes too much money to qualify for Medicaid, but cannot afford health insurance, then the children may qualify for CHIP coverage.

If a child has CHIP coverage, then a parent won’t be required to have traditional health coverage for said children. The Children’s Health Insurance Program is run on the state level and works closely with a state’s Medicaid program.

Changes Coming Soon

Recently, CHIP was on the brink of disaster. For 114 days, the program was without a budget. States didn’t know how much money they’d receive from the government for CHIP or when they’d get it.

Many states had grieved concerns about the future of the program and if they could afford funding. This was because lawmakers had been using the program as a bargaining tool in larger talks surrounding the budget and immigration.

The Children’s Health Insurance Program had been politicized. One side of the coin tried to attach the bill to budget cuts for Obamacare, while the other side wanted DACA protections included with CHIP.

Neither side got what they wanted with regards to these political issues, yet both realized CHIP must be passed and funded. So, both sides came together and got the bill funded for an additional six years, while also creating a budget for the states.

This was huge for proponents of CHIP, as the current bill now has until 2024 before it comes up for funding, again. This gives states and low-income families a lot of breathing room and protections.

An Insurance Industry Look at the Children’s Health Insurance Program

Nearly everyone inside the insurance industry, along with both Republicans and Democrats, finds huge value in CHIP. The program offers significant benefits to low income to middle class families looking to keep their children protected for a low cost.

The Children’s Health Insurance Program has also been a huge success. Since being implemented over 20 years ago, CHIP has cut the rate of uninsured children in half nationwide. 14% of children in the United States were uninsured in 1997. That number was down to 7% in 2012.

During that same timeframe, the numbers of uninsured adults went from 19% to 21% nationally. As well, many studies have shown that CHIP not only provides health insurance coverage to children, but that the coverage levels are nearly equivalent to the private sector coverage many kids receive through their parents’ employer plan.

The program has had such great success that many in the insurance industry were baffled to see lawmakers using CHIP as a political bargaining tool. Most believed that the program was incredibly effective and here to stay. Thankfully, that has turned out to be the case, as CHIP is locked in until 2024.

Everything You Need to Know About the Children’s Health Insurance Program

The Children’s Health Insurance Program is here to stay for now. While the health insurance industry is currently in political limbo, this is one of the best government-sponsored programs. There is no reason to politicize it or attempt to destroy CHIP at this point. From many viewpoints, that would be a disaster.

We shouldn’t have to worry about that anytime soon. With CHIP getting an extension until 2024, there’s nothing to worry about in the near future. Plus, studies have shown that CHIP is cheaper for the government to manage than other healthcare alternatives. As such, there shouldn’t be many issues moving forth.

To learn more about family health insurance policies or additional insurance options, contact the experts at HealthQuoteInfo.com at 855-881-0430. Our licensed health insurance experts will be happy to answer any questions you have.