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More Evidence CHIP Works for Kids, Families

A recent national report to Congress confirms what families who benefit from Pennsylvania’s Children’s Health Insurance Program already know: CHIP is a cost-effective way to keep kids healthy.

The report analyzed out-of-pocket spending for children with coverage through the health care marketplace compared to those covered by CHIP. It found CHIP requires less out-of-pocket spending, on average, than marketplace coverage in every one of the 36 states analyzed, including Pennsylvania. While CHIP limits out-of-pocket expenses to be no more than 5 percent of family income, marketplace coverage provides no such protection.

While the Affordable Care Act is working to make health care coverage more affordable and accessible, the findings underscore that CHIP remains a good deal for kids and families. It also means that if CHIP is not funded by the federal government beyond Sept. 30, 2017, families benefitting from CHIP now could end up paying higher out-of-pocket expenses if they have to buy coverage though the health insurance marketplace.

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