SCHIP: Overview

The State Children's Health Insurance Program (SCHIP)

What is SCHIP?
The State Children's Health Insurance Program (SCHIP) was authorized by Congress in 1997 to expand public health care coverage availability to low-income children and families. At the time, more than 10 million children lacked health insurance.¹ SCHIP gave states $40 billion in federal funding over 10 years to provide coverage for children living in families that were earning too much to qualify for Medicaid but not enough to afford private insurance. SCHIP provides coverage to more than 7 million children annually. Overall, more than 20 million children were covered by either Medicaid or SCHIP in 2007.

Health Insurance Coverage of Children (Under Age 18), by Source of Coverage, 2006
(in millions)

Source: Employee Benefit Research Institute estimates from the March Current Population Survey, 2007 Supplement.

Who does SCHIP cover?
Typically, SCHIP provides health care coverage for families that earn too much to qualify for Medicaid but are not offered or cannot afford private coverage. Two-thirds (68%) of all uninsured children come from families in which a parent or guardian works full time and full year.² Most states provide coverage for uninsured children under 18 with family incomes up to two times the federal poverty level (i.e., an annual income of $40,000 for a family of four in 2006).³ The specific income eligibility levels vary from state to state. For information on income eligibility levels in specific states, visit www.insurekidsnow.gov [1].

What does SCHIP cover?
Covered services vary from state to state. All states cover immunizations and healthy baby care. In addition, most states cover doctor visits, prescription medicines, hospitalizations, dental and eye care, and medical equipment.⁴

Why is SCHIP important?
According to the State Health Access Data Assistance Center (SHADAC) analysis of the U.S. Centers for Disease Control and Prevention's 2006 National Health Interview Survey (NHIS), uninsured kids are more than three times as likely as insured kids not to visit a doctor in the course of a year. In addition, more than half (53%) of all uninsured kids did not have a "well-child" check up—more than double the rate of kids with insurance.⁵ Children with health care coverage are better prepared to learn in school and better prepared to succeed in life.

The number of uninsured children in the United States has decreased by more than 2 million since the government-funded SCHIP was authorized in 1997,⁶ even as the number of uninsured Americans has increased.⁷ Congress needs to reauthorize SCHIP in 2007 to continue to cover kids currently enrolled in the program and to accelerate the rate of progress in covering more uninsured kids—until all kids have the coverage they need to stay healthy.