Children's health insurance program (CHIP)
The State Children's Health Insurance Program (CHIP) was
established by the Balanced Budget Act of 1997 as
Title XXI of the Social Security Act. It permits
states to expand children's health coverage to children whose
family incomes exceed the requirements for Medicaid, but are
insufficient to afford private insurance coverage.
The program makes approximately $4 billion a year in federal
grants available to states to provide health coverage to children
younger than 19 years of age with family incomes at or below 200
percent of the federal poverty level. Federal funds may be used to
expand Medicaid, create a new, nonentitlement program, or implement
a combination of these programs. As a result of the flexibility
given to states under Title XXI, CHIP should be thought of
primarily as a funding source, and not as a program per
Beginning July 1, 1998, Indiana implemented the first phase of
CHIP as an expansion of Hoosier Healthwise to provide health
coverage to children younger than the age of 19 with family incomes
of no more than 150 percent of the federal poverty level.
In September 1999, an amendment to Indiana's original CHIP state
plan was submitted to the Health Care Financing Administration
(HCFA). The amendment requested authorization to implement the
second phase of CHIP as a non-Medicaid, state-designed program that
provides coverage to uninsured children younger than 19 years of
age who are members of families with annual incomes greater than
150 percent of the federal poverty level and not more than 200
percent of the federal poverty level. On December 22, 1999, the
Health Care Financing Administration (HCFA) authorized the
amendment, and the program began January 1, 2000.
CHIP is administered through the Hoosier Healthwise program
(package C), which provides coverage for children, pregnant women,
and low-income families. To provide services to this population,
you must be enrolled as a Hoosier Healthwise provider.
For more information, see the IHCP Provider
Manual or the Hoosier Healthwise information on
this Web site.