CHIP (Children’s Health Insurance Program)
Definition
The Children’s Health Insurance Program (CHIP) is a federal-state partnership that provides health insurance to children in families with incomes above the Medicaid eligibility threshold but who cannot afford private insurance. CHIP is administered by states with federal matching funds.
In the 340B context, CHIP is relevant as a payer for some covered entity patients. The duplicate discount prevention considerations that apply to Medicaid also apply to CHIP, as CHIP operates under similar federal rules. Covered entities that serve CHIP-enrolled patients should understand how CHIP billing interacts with their 340B program.
CHIP’s relationship to 340B is similar to Medicaid’s: covered entities must ensure they are not receiving both a 340B discount and a CHIP rebate on the same drug transaction.
Frequently Asked Questions
Why CHIP (Children’s Health Insurance Program) Matters
CHIP is a payer for many covered entity patients, particularly at pediatric-focused covered entities. Duplicate discount prevention considerations apply to CHIP as well as Medicaid.
How Virtue 340B Uses It
Virtue 340B references CHIP in the context of billing and duplicate discount prevention discussions for covered entity clients.