Children’s Medicaid and CHIP Fact Sheet

Why are Medicaid and CHIP important?

  • Over 77 million people in the U.S. use Medicaid or Children’s Health Insurance Program (CHIP) to pay for their health care, including: 
    • Nearly half of all U.S. children (more than 36 million). 
    • Approximately 7 million children with special health care needs

How do these programs help children with special health care needs?

  • They pay for preventive and specialty health care, dental care, mental health care and therapies to help children reach their fullest potential. 
  • They fund specialized medical equipment such as wheelchairs, walkers and communication devices.  
  • Medicaid also covers services to help families including: 
    • Personal care attendants so caregivers can work.  
    • Home and community-based services to prevent institutionalization. 

Why do these programs make financial sense?

  • They are efficient.  For children with similar health issues, Medicaid expenses per child are 27% less than for private insurance. 
  • They are cost-effective. Providing preventive care and supportive services is much less expensive than the costs of emergency, inpatient, and long-term care services.  

Potential impacts of funding cuts:

  • Fewer health care providers and services. 
  • Reduced access to care (particularly in rural communities) and longer wait times. 
  • Delays in early intervention. 
  • Increased utilization of costly emergency care. 

Sources & Additional Resources

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