Setting Income Thresholds in Medicaid/SCHIP: Which Children Should Be Eligible?

Brief

Setting Income Thresholds in Medicaid/SCHIP: Which Children Should Be Eligible?

Abstract

As the reauthorization of the State Children's Health Insurance Program (SCHIP) and broader health care reform efforts are considered, important policy questions include where eligibility thresholds should be set for public coverage and how much latitude states should have in setting their thresholds. This analysis shows that employer-sponsored insurance premiums are less affordable for families at 300 percent of the FPL now than they were for families at 200 percent of the FPL in 1996, particularly in areas with a high cost of living and suggests the need to adjust eligibility thresholds for growth in health care costs.

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