States Expand CHIP Programs to Include Children of Low-Income State Workers

At least six states have expanded their Children's Health Insurance Programs to include children of low-income state employees, according to a Kaiser Health News report.

This option was prohibited until the passage of the federal healthcare reform law in 2010. As a result of the policy change, lower-income state employees who have struggled to pay for family coverage can benefit from coverage for their children.

CHIP, which is jointly financed by the states and the federal government, provides coverage to uninsured children of families that earn too much to qualify for Medicaid but cannot afford private insurance.

The federal government prohibited children of low-income state employees from qualifying for CHIP coverage in 1997 because of concerns that financially strapped states would transfer the cost of public employee health coverage to the federal government.

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