Calif. Opens Health Program To Higher-Income Kids

For most children in most parts of California, the family eligibility income limit will still be 250% of the federal poverty level, according to officials at the U.S. Department of Health and Human Services.

California officials hope the income limit increase in the 4 extremely expensive counties will help them enroll 33,000 more children in the state's CHIP health plan.

The federal government developed CHIP to help children of uninsured residents who earn too much to qualify for Medicaid but too little to pay for conventional private health insurance. Each state runs its own children's health program, but the federal government helps fund and regulate the programs.

Some critics in the insurance industry have praised the goal of expanding access to health coverage for moderate-income children but worried about the possibility that availability of CHIP coverage might encourage employers to stop offering health benefits for workers' children.