Which term best fits a health insurance program designed for eligible children in families with incomes too high for Medicaid but too low for private coverage?

• A. Medicaid
• B. Health Exchange
• C. Children's Health Insurance Program
• D. Affordable Care Act

Answer: (C)

CHIP is designed for children in families that earn too much for Medicaid but not enough to reliably afford private coverage. It fills the gap by offering an affordable health insurance option specifically for kids, with funding and administration shared by the federal government and states. This targeted purpose—covering eligible children when Medicaid is out of reach but private coverage isn’t affordable—makes CHIP the best fit. Medicaid serves the lowest-income children, private insurance marketplaces (health exchanges) are broader options for many adults and families, and the Affordable Care Act is the law that supports those marketplaces—not a program aimed specifically at children in this income gap.