CHIP Policy Overview

CMS Administers the Children's Health Insurance Program (CHIP).  Program benefits became available October 1, 1997 and will provide $24 billion in federal matching funds over 10 years to help states expand health care coverage to over 5 million of the nation's uninsured children.  Reauthorization of the Program occured on February 4, 2009, when the President signed into law the Children's Health Insurance Program Reauthorization Act of 2009 (CHIPRA or Public Law 111-3).  CHIPRA finances the Children's Health Insurance Program (CHIP) through Federal fiscal year (FY) 2013 and is expected to extend health insurance coverage to millions of additional uninsured children.  This legislation will help ensure the health and well-being of our nation's children.

The Children's Health Insurance Program (CHIP) is jointly financed by the Federal and State governments and is administered by the States.  Within broad Federal guidelines, each State determines the design of its program, eligibility groups, benefit packages, payment levels for coverage, and administrative and operating procedures.  CHIP provides a capped amount of funds to States on a matching basis.  Federal payments under title XXI to States are based on State expenditures under approved plans effective on or after October 1, 1997.