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Children's Health Insurance Program (CHIP)

Department of Health and Human Services

Children’s Health Insurance Program (CHIP) is a joint federal/state program, administered by the states that provides health insurance for qualifying children.

Agency Accountable Official: Ellen Murray , Assistant Secretary for Financial Resources



Total Payments (Outlays)more info


Improper Paymentsmore info


Improper Payment Ratemore info


Not Reported Improper Payment Rate Target more info

All amounts are in billions of dollars

Tabular view for Projected improper payments Tabular View   


Note: HHS calculated and is reporting a rolling national error rate that is based on measurements that were conducted in Fiscal Years (FYs) 2012, 2013, and 2014.

Program Comments

Because CHIP payments are susceptible to improper payments, the federal government and states have a strong financial interest in ensuring that claims are paid accurately. The Department of Health and Human Services (HHS) has developed a multi-faceted strategy to measure the national improper payment rate for CHIP, through the payment error rate measurement (PERM) program. The fee-for-service (FFS) and managed care components of CHIP are measured by federal contractors, while states lead the effort in measuring errors in the eligibility component of CHIP. The program is measured using a 17-state, 3-year rotation to produce and report national program improper payment rates. All improper payment rate calculations for the CHIP program are based on the ratio of estimated dollars of improper payments to the estimated dollars of total payments. Individual state improper payment rate components are combined to calculate national component improper payment rates, and individual state CHIP program improper payment rates across all components are combined to calculate the national CHIP program improper payment rate. Read More...