CHIP and Other Programs

Beyond Medicaid and Social Security, several other government programs provide health coverage to specific populations. These include CHIP for children, TRICARE for military families, VA healthcare for veterans, and Indian Health Service for Native Americans.

Children's Health Insurance Program (CHIP)

CHIP Overview

FeatureDetails
Created1997 (as part of Balanced Budget Act)
PurposeCover uninsured children in families above Medicaid limits
AdministrationJoint federal-state program
FlexibilityStates design within federal guidelines

CHIP Eligibility

RequirementDetails
AgeUnder 19
IncomeToo high for Medicaid, too low for private coverage
Income rangeTypically 170-400% FPL (varies by state)
CitizenshipU.S. citizens or qualified immigrants
ResidencyState resident
Other coverageCannot have access to affordable employer coverage

2025 CHIP Income Limits (Examples)

StateIncome Limit
Highest statesUp to 400% FPL
Most states200-300% FPL
Minimum required200% FPL

CHIP vs. Medicaid for Children

FeatureMedicaidCHIP
Income levelLower incomeHigher income
Cost-sharingNone or minimalMay have premiums/copays
Federal matchStandard FMAPEnhanced FMAP
Benefit packageComprehensive (EPSDT)State-designed

2025 CHIP Updates

ChangeDetails
Continuous coverageRequired for 12 months
Incarcerated childrenStates cannot terminate, only suspend
Pregnancy coverageMany states cover through CHIP

Key Point: CHIP serves as a "bridge" between Medicaid and private insurance, covering children whose families earn too much for Medicaid but cannot afford private coverage.

TRICARE (Military Health)

TRICARE Overview

FeatureDetails
Administered byDefense Health Agency
ServesActive duty, retirees, and families
EligibilityRegistered in DEERS database
CoverageComprehensive health benefits

TRICARE Plans

PlanWho's EligibleNetwork
TRICARE PrimeActive duty (required), others optionalHMO-style, assigned PCM
TRICARE SelectActive duty families, retireesPPO-style, self-referred
TRICARE For LifeMedicare-eligible retireesMedicare supplement
TRICARE Young AdultDependents 21-26Extension coverage
TRICARE Reserve SelectGuard/Reserve membersComprehensive coverage

TRICARE and Other Coverage

SituationTRICARE Role
With employer coverageTRICARE pays secondary
With MedicareTRICARE For Life supplements Medicare
With MedicaidTRICARE pays before Medicaid
With VA benefitsCan use both (different services)

Active Duty Service Members

FeatureDetails
CostNo premiums, no cost-sharing
AccessMilitary treatment facilities first
EnrollmentAutomatic in TRICARE Prime
Family coverageDependents eligible for TRICARE

Exam Tip: TRICARE is secondary to all health benefits except Medicaid, Indian Health Service, and other government programs. When a beneficiary has employer coverage, that coverage pays first.

Veterans Administration (VA) Healthcare

VA Healthcare System

FeatureDetails
OperatesVA hospitals and clinics nationwide
EligibilityVeterans with qualifying service
CostBased on priority groups
ScopeComprehensive medical care

VA Priority Groups

GroupWho Qualifies
1Service-connected disability 50%+
2Service-connected disability 30-40%
3Former POWs, Purple Heart, severely disabled
4Aid and Attendance/Housebound
5Low-income veterans
6Certain wartime service, specific conditions
7-8Higher income, non-service connected

VA vs. Private Insurance

AspectDetails
ACA complianceVA coverage counts as minimum essential coverage
CoordinationVA can coordinate with other coverage
Dependent coverageCHAMPVA for eligible dependents
Not insuranceVA provides care, not insurance payments

CHAMPVA (Civilian Health and Medical Program of the VA)

FeatureDetails
ForSpouses/children of veterans with 100% disability
Also forSurvivors of veterans who died from service-connected condition
Not forThose eligible for TRICARE
CoverageShares costs with beneficiaries

Indian Health Service (IHS)

IHS Overview

FeatureDetails
AgencyWithin HHS
ServesAmerican Indians and Alaska Natives
BasisTreaty and trust responsibilities
FacilitiesHospitals, clinics, health stations

IHS Eligibility

RequirementDetails
Tribal membershipMember of federally recognized tribe
DescendantOf tribal member (varies)
ResidencyOn or near reservation (for some services)
No income testBased on identity, not income

IHS and Other Coverage

SituationIHS Role
With MedicareMedicare pays first
With MedicaidMedicaid pays first
With private insurancePrivate pays first
Without other coverageIHS provides care directly

Purchased/Referred Care (PRC)

FeatureDetails
PurposeCare from non-IHS providers
When usedServices unavailable at IHS facilities
Prior authorizationUsually required
FundingLimited (may have waiting lists)

Key Point: IHS is the payer of last resort—any other coverage (Medicare, Medicaid, private insurance) pays before IHS. This helps preserve limited IHS funding.

Program Comparison Summary

Quick Reference

ProgramPopulationFundingPayer Priority
MedicaidLow-incomeFederal + StateLast (for dual eligibles)
CHIPUninsured childrenFederal + StatePrimary
TRICAREMilitary familiesDefense budgetSecondary to most
VAVeteransFederalCan coordinate
IHSNative AmericansFederalLast resort

Exam Tip: Understanding payer order is critical—know which program pays first when a person has multiple coverages.

Test Your Knowledge

CHIP is designed to provide health coverage for children whose families:

A
B
C
D
Test Your Knowledge

When a TRICARE beneficiary also has employer-sponsored health insurance, which pays first?

A
B
C
D
Test Your Knowledge

Which of the following is TRUE about the Indian Health Service (IHS)?

A
B
C
D
Test Your Knowledge

CHAMPVA provides healthcare benefits to:

A
B
C
D