State Children’s Health Insurance Program (SCHIP)
State Children’s Health Insurance Program (SCHIP) Frequently Asked Questions
Contents
- What is SCHIP?
- How does SCHIP work?
- Who is eligible to receive health coverage through SCHIP?
- Why is SCHIP important in today’s economy?
- Why do biopharmaceutical companies support the expansion of SCHIP?
What is SCHIP?
The State Children’s Health Insurance Program (SCHIP) was established by a broad bipartisan coalition in 1997 as part of the Balanced Budget Act of 1997. The popular program offers federal funds to help states provide health coverage to low-income children whose parents do not qualify for Medicaid, but cannot afford private health insurance Currently, more than seven million low-income children are enrolled in SCHIP.
Thanks to SCHIP, millions of American families have peace of mind that their children have health coverage and can receive regular health exams and preventive care. For more than 10 years, SCHIP has ef fectively safeguarded the health of these children and helped them get an early start at leading healthy lives.
How does SCHIP work?
Under SCHIP, states may enroll low-income children in an SCHIP-financed expansion of Medicaid, create a new state SCHIP program or devise a combination of both approaches. States choosing the Medicaid option must provide all Medicaid mandatory benefits and all optional services covered under the state plan, while separate state programs must generally follow certain coverage and benefit options outlined in SCHIP law.
Who is eligible to receive health coverage through SCHIP?
All states, Washington, D.C. and five territories have SCHIP programs. Each state sets its own standards for eligibility in SCHIP. Eligibility rates for Medicaid and SCHIP vary by state and range from 150 to 350 percent of the federal poverty level.
Together, Medicaid and SCHIP provide health coverage for 1 in 4 of our nation’s children. SCHIP covers approximately seven million children.
According to the Congressional Budget Office, the expansion of SCHIP will reduce the number of uninsured children by more than four million, including the 1.6 million who are currently eligible for, but not enrolled in, Medicaid or SCHIP.
Why is SCHIP important in today’s economy?
The evidence is unequivocal that the need for essential safety net programs, like SCHIP, will increase during periods of economic downturn like the recession we are currently facing. As with past economic challenges, states will continue to struggle with the mounting pressure to cut health coverage programs just at the time that an increasing number of people need the vital services they provide.
An increasing number of people are losing their jobs and their health coverage. Each additional percentage point rise in the unemployment rate will increase Medicaid and SCHIP enrollment by 1 million.
The current economic downturn has also put enormous pressure on states’ budgets and the ability for states to provide health insurance through SCHIP. Facing unsustainable increases in demand for coverage, states have resorted to cutting benefits, eligibility levels, and provider payments in order to balance budgets.
Why do biopharmaceutical companies support the expansion of SCHIP?
SCHIP will help to maintain vital health coverage for low-income children during these challenging economic times. Now more than ever, it is especially important to both our economic and our public health that we keep SCHIP strong and maintain program coverage for all eligible children.
Expanding SCHIP will continue to provide comprehensive health coverage to more than seven million low-income children who are currently enrolled, and will extend the program to an additional four million children.
SCHIP is a critical factor in achieving the goal of developing a health care system that focuses on preventing and managing chronic disease and extending af fordable, quality health insurance to all Americans. By improving children’s access to health care, SCHIP holds the promise of improving the quality of life for all of our nation’s families.