This initiative was designed to reach these children, many of whom come from working families with incomes too high to qualify for Medicaid but too low to afford private health insurance. The initiative is a partnership between the federal and state governments that will help provide children with the health coverage they need to grow up healthy and strong. Funds for the program became available to the states on October 1, 1997.
States receive enhanced federal matching funds only for actual expenditures to insure children.
Ensuring Meaningful Health Benefits. Under the program, states have flexibility in targeting eligible uninsured children. States may choose to expand their Medicaid programs, design new child health insurance programs, or a combination of both. States choosing the Medicaid option must offer the full Medicaid benefit package. Limiting Patient Costs.