CRS Issue Statement on Medicaid and CHIP

Evelyne P. Baumrucker, Coordinator
Analyst in Health Care Financing

Medicaid plays a prominent and important role in the U.S. health care system. It is a means-tested entitlement program that finances the delivery of primary and acute care medical services, and long-term care for certain low-income populations. A federal-state matching program, Medicaid is the largest or second-largest item in most state budgets, and is second only to Medicare in terms of federal spending on health care. 

The recently reauthorized Children's Health Insurance Program (CHIP) allows states to cover targeted low-income children with no health insurance in families with income that is above Medicaid eligibility levels. Some adults (e.g., parents) may also be covered typically via special waivers. Current federal CHIP funding extends through FY2013. Unlike Medicaid, CHIP is not an entitlement program; instead federal matching funds are allotted to the states which in turn determine eligibility rules and covered benefits within broad federal guidelines.


Date of Report: January 14, 2010
Number of Pages: 5
Order Number: IS40379
Price: $7.95

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