CHIP.
In plain English
CHIP is a state-run program that provides low-cost health coverage to children in families that earn too much for Medicaid but still need help. The letters stand for the Children's Health Insurance Program. It is funded jointly by the federal government and the states, and each state sets its own income limits and may charge small premiums or copays. CHIP typically covers doctor visits, immunizations, dental, vision, and hospital care for kids. Like Medicaid, you can apply any time of year, not just during open enrollment, and you check your state's income limits with your state CHIP or Medicaid agency.
01Why it matters
If your family earns just above the Medicaid line, CHIP can keep your kids covered at low cost instead of leaving them uninsured or pushing you toward a pricier marketplace plan.
02The math, step by step
Imagine a family of four earning a bit too much to qualify for Medicaid. The children may still qualify for CHIP. The state checks the household income against its CHIP limit, and if the kids qualify, the family pays little or nothing for their coverage, with small copays at most. The exact income cutoff depends on the state, which you check with your state CHIP agency.
03What this is NOT
Both are low-cost government coverage, but Medicaid covers people across ages at lower incomes, while CHIP is aimed specifically at children in families that earn a little too much for Medicaid. The application usually screens for both at once.
04Receipts
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Plain-English answers from our glossary. Receipts included. Never advice.
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