Insurance for Low-Income Children

Until the Patient Protection and Affordable Care Act (hereafter Affordable Care Act) was enacted in 2010, children in families with low to moderate incomes could receive subsidized health insurance through either Medicaid or the Children’s Health Insurance Program (CHIP). The Affordable Care Act added a third option through the creation of qualified health plans (QHPs), which are sold on the federal and state exchanges and subsidized for individuals and families with incomes of up to 400% of the federal poverty level (FPL). This new insurance option for children in families with low to moderate incomes has stimulated a debate regarding children’s health insurance coverage. Some hypothesize that the QHPs, born from the commercial market, might eclipse the need for CHIP coverage although the Affordable Care Act maintained both options. A recent, short-term extension of CHIP funding by Congress through 2017 now prolongs this debate.