The **Children's Health Insurance Program (CHIP)** is a U.S. federal-state partnership established in 1997 under the Balanced Budget Act to provide health insurance to uninsured children in families whose incomes are too high to qualify for Medicaid but too low to afford private coverage[1][5]. CHIP was created after the failure of President Bill Clinton's comprehensive healthcare reform, with strong advocacy from First Lady Hillary Clinton and bipartisan sponsorship by Senator Ted Kennedy and Senator Orrin Hatch[1][2].
CHIP functions by providing matching federal funds to states, which administer their own programs aligned with federal guidelines, allowing flexibility in coverage and eligibility[1][6]. Since its inception, CHIP has been instrumental in expanding children's health coverage, sharply reducing the uninsured rate among low-income children from about 23% in 1997 to roughly 5.4% in recent years[5]. As of mid-2023, approximately 6.9 million children were enrolled in CHIP coverage, alongside 34.1 million children on Medicaid, together covering about half of all U.S. children and a majority of children of color[5].
Key milestones include the 2009 Children's Health Insurance Reauthorization Act, which expanded coverage to an additional 4 million children and pregnant women, including lawfully residing immigrants, and extensions through 2027 under the Bipartisan Budget Act of 2018[1][2]. CHIP has also worked synergistically with Medicaid to maintain coverage continuity and improve access during economic downturns and public health crises[4].
Notable aspects of CHIP include its bipartisan origins and balanced design that accommodates both entitlement and block grant elements, reflecting political compromises and federal-state collaboration[6]. CHIP has contributed to improved health outcomes, reduced disparities, and enhanced educational and economic prospects for children[4]. Ongoing challenges remain in enrollment barriers and ensuring coverage for all eligible children, prompting continued policy discussions for program strengthening[2][6].
In sum, CHIP stands as a landmark health insurance program i