Delaware Passes Cover-All-Kids Legislation

September 1, 2009.  Delaware Governor Jack Markell signed legislation on August 27^th expanding the state's Children's Health Insurance Program (CHIP).  Parents whose income is too high to qualify for subsidized coverage through Medicaid or CHIP will soon be able to pay a monthly premium of $170 per child plus administrative fees (i.e., the state's entire cost) for insurance that is actuarially equivalent to CHIP or Medicaid. 

CHIP coverage in Delaware is currently only available to children under age 19 with family incomes below 200% of the federal poverty level (FPL).  However, nearly half of Delaware's uninsured children come from families with incomes above this cut-off point. 

It is expected that the CHIP buy-in will be helpful to lower-income families with uninsured kids because they need only enroll their children, rather than the entire family.  Many major insurers do not allow child-only coverage, and the cost of family coverage can surpass $1,000 a month, which is unaffordable for many people. 

The legislation (H.B. 139) does include some crowd-out provisions.  Namely, a child must have been uninsured for at least three consecutive months, unless his or her parents are currently eligible for unemployment benefits or lost health coverage involuntarily.

The passage of H.B. 139 makes Delaware the fourteenth state to allow a CHIP buy-in with no income limit.  To view the text of Delaware's legislation, click here.