SCHIP programs are required to implement anti-crowd-out policies that prevent or discourage families and businesses from dropping a child's current coverage for coverage through the SCHIP program. Programs are implementing an array of policies, such as imposing waiting periods without health insurance--Alabama, California, Colorado, Connecticut, Florida, and New Jersey. Colorado, for example, imposes a three-month waiting period if the family has refused health coverage where the employer pays at least 50 percent of the cost of coverage. Another policy option is to deny coverage when employer-sponsored coverage is available. Only Michigan has implemented this option in its S-SCHIP program.
The next chapter explores the implications of these cross-state and within-site variations for simulating eligibility for coverage under Medicaid or SCHIP.