What are the two ways states can implement CHIP?

States have the flexibility to implement the Children's Health Insurance Program (CHIP) in a way that best suits their needs and the needs of their residents. The correct answer highlights that a combination of Medicaid expansion and separate CHIP allows states to tailor their approach.

When a state opts for Medicaid expansion, it extends its Medicaid coverage to include more children in families with incomes too high to qualify for traditional Medicaid but low enough to benefit from CHIP. This method integrates CHIP into the existing Medicaid structure, making it easier to manage and offer continuity of care.

On the other hand, a separate CHIP program is designed specifically to cover children in families that might not qualify for Medicaid. This allows states to develop their own eligibility criteria, benefits, and cost-sharing requirements, creating a program that fits their unique demographic needs.

The combination approach offers increased flexibility, allowing states to maximize coverage and resources for children. This dual strategy can improve access to healthcare for low-income children and families by taking advantage of both Medicaid's existing infrastructure and the specific needs addressed by a separate CHIP program.