By Sarah Barr
At least six states have opened their
Children’s Health Insurance Program to the kids of low-income state employees, an option that was prohibited until the passage of the 2010 health-care law.
This relatively small step has as its backdrop years of debate over the program, known as CHIP, including concerns that it encourages states — and consumers — to replace private insurance with taxpayer-subsidized coverage.
Now, as a result of the
policy change, families of lower-income state workers who have struggled to pay for family coverage can qualify for the program. CHIP, which is jointly financed by the states and the federal government, provides coverage to the uninsured children of families who earn too much to qualify for Medicaid but cannot afford private insurance.
The federal government had closed that option to most states when CHIP was established in 1997, because of concerns that it might be an easy way for financially strapped states to shift the costs of some public-employee health benefits to the federal government. Federal employees were allowed to enroll their children.
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