The State Children's Health Insurance Program (CHIP)

Abstract

Between 7 million and 10 million children in the United States lack health insurance. Many of these uninsured children experience difficulty obtaining needed health care.1 To expand health insurance coverage for children, in August 1997, Congress enacted the State Children’s Health Insurance Program (CHIP) as part of the Balanced Budget Act of 1997.2 CHIP, also known as Title XXI of the Social Security Act, offers states new federal funding in the form of block grants to provide “child health assistance to uninsured children in low-income families in an effective and efficient manner that is coordinated with other sources of health benefits coverage for children.” The program is authorized for 10 years and is expected to provide insurance coverage for millions of currently uninsured children. Federal expenditures on child health assistance under the law are estimated to total $40 billion to $50 billion over the life of the legislation.