How Does the SCHIP Exclusion Affect Health Insurance Coverage for Children of Low Income State Workers?

Abstract

A provision of the law that created the State Children's Health Insurance Program (SCHIP) to provide low cost coverage for moderate income children whose parents do not have employment-based coverage excludes children whose families are eligible for participation in a state employee health benefit plan from enrollment in the state's SCHIP program. This exclusion applies even when a child is not covered and would otherwise be eligible for SCHIP based on his or her family's income. This article presents an analysis of the implication of this policy on coverage among state employee dependents and the potential effect on these children. We found no evidence that low income children of state workers were disproportionately lacking coverage from 2002 to 2004, but rapidly increasing premiums in state benefit plans may portend problems for these children.