American Insurance · PUBLISHED 17 JUL 2026 · VERIFIED 17 JUL 2026 · US EDITION

Your Kids Can Get CHIP After Medicaid Ends — Up to $66,600/Year

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If you lose Medicaid, your child can still qualify for CHIP coverage in Utah even if your family income is as high as <mark class=“fig”>$66,600 a year for a family of four, instead of becoming uninsured.

The number that matters

65% — In the 12 months after people lose Medicaid or CHIP, 65% experience at least one period without any health insurance, meaning kids are at high risk of becoming uninsured even though many still qualify for CHIP or other coverage (Medical Expenditure Panel Survey 2016–2019, analyzed by KFF, published 2023).

How it quietly costs you

The first quiet problem is parents assuming their kids are no longer eligible for public coverage once the family loses Medicaid, even though CHIP often has higher income limits and different rules.

• Mechanism

• Medicaid continuous coverage protections ended on April 1, 2023, triggering full-scale redeterminations for Medicaid and CHIP enrollees across the U.S.

• When an adult loses Medicaid due to increased income or paperwork issues, children may still qualify for CHIP because CHIP income thresholds are typically higher than Medicaid’s child thresholds and are specifically designed for children in families with modest incomes.

• Many families receive a generic “Medicaid ending” notice and do not realize they must separately check children’s CHIP eligibility or re-apply.

• Concrete impact

• Pre‑pandemic data show that in the year after losing Medicaid/CHIP, only 35% of people have continuous coverage, while 65% have at least one gap in coverage.

• Only 26% enroll in and retain some other coverage for the full year after losing Medicaid/CHIP, underscoring how few successfully transition to new plans.

• In Utah, as one example of CHIP income rules, a family of four can have gross income up to <mark class=“fig”>$5,500 per month (<mark class=“fig”>$66,600 per year) and still qualify their children for CHIP as of March 2026.

• That income limit is over 50% higher than the <mark class=“fig”>$43,284 annual limit for a two‑person family (single parent and one child), showing how CHIP thresholds scale and can cover families who are no longer Medicaid‑eligible but still not secure enough for private coverage.

• Old vs better comparison

• Old (inaction): Family loses Medicaid, assumes all coverage is gone, leading to uninsured kids and exposure to full out‑of‑pocket costs; 65% of people in this situation experience an uninsured period.

• Better: Family immediately re‑applies for Medicaid/CHIP; CMS notes families can apply for Medicaid or CHIP any time, with no limit on the number of applications, and children may newly qualify if income or medical needs fit CHIP rules.

• This “better” path can mean children stay enrolled in CHIP even while parents move to Marketplace or employer coverage, avoiding gaps that can lead to thousands of dollars in medical bills over a year if a child has an emergency or ongoing care needs (inferred from standard U.S. cost of care; exact bills vary).

The second, compounding trap

The second problem is missing special enrollment windows for other coverage (Marketplace or employer plans) after losing Medicaid/CHIP, especially when children qualify for CHIP but parents still need adult coverage.

• Mechanism

• Losing Medicaid or CHIP is a “Qualifying Life Event” that triggers a Special Enrollment Period (SEP) for:

• Employer health plans: workers and eligible family members generally have 60 days from losing Medicaid/CHIP to request special enrollment in an employment‑based plan, under federal rules highlighted by the U.S. Department of Labor.

• Marketplace coverage: CMS explains that people losing Medicaid/CHIP can access an SEP by submitting a HealthCare.gov application and attesting to their Medicaid/CHIP denial, without waiting for the coverage to fully end.

• CMS guidance states people who lose Medicaid or CHIP have 90 days after coverage ends to report the loss on their Marketplace application and pick a plan.

• During the Medicaid unwinding period, for losses between March 31, 2023 and July 31, 2024, Families USA notes consumers using HealthCare.gov have 60 days after applying to choose a plan, but must indicate they lost Medicaid or CHIP on the application.

• Concrete cost of inaction

• If parents missing these deadlines remain uninsured while their kids could be on CHIP:

• They face full‑price medical bills instead of subsidized premiums or cost‑sharing reductions available through the Marketplace.

• CMS reports most people can find a Marketplace plan for <mark class=“fig”>$10 or less per month with financial help, meaning even short periods of uninsurance often result from missed paperwork, not affordability.

• KFF’s analysis shows that after Medicaid/CHIP disenrollment:

• 41% of individuals re‑enroll in Medicaid/CHIP within a year, reflecting “churn” and administrative gaps.

• That means nearly 6 in 10 (59%) do not successfully return to Medicaid/CHIP within a year, and many fail to secure any alternative coverage.

• If a parent skips employer and Marketplace SEPs and remains uninsured for a year, typical U.S. out‑of‑pocket spending can easily exceed <mark class=“fig”>$1,000+ for a single emergency department visit or minor hospitalization (based on typical commercial claims data; specific figures vary and are not directly reported in these sources, so this is a conservative inference).

• Long‑run cost

• Because churn and coverage gaps recur, KFF finds that many people do not transition to and retain other coverage after disenrollment.

• Over a 10‑year working period with repeated administrative breaks, a parent missing SEPs every time they lose Medicaid could face tens of thousands of dollars in avoidable premiums subsidies and employer contributions foregone (inferred from typical employer contribution rates and Marketplace tax credits; exact totals are not directly quantified in the sources).

What this looks like in practice

Persona

• Name: Maria
• Age: 34
• Job: Retail supervisor
• Income: <mark class=“fig”>$54,648 per year (equivalent to Utah CHIP income limit for a three‑person family — parent and two children — as of March 2026).
• Family: Two children, ages 7 and 10
• Coverage history: Family was on Medicaid; Maria’s raise pushed them over Medicaid’s threshold. Medicaid ended during the 2023–2024 unwinding, and she assumed everyone was now uninsured.
• Years to retirement: ~31 years (assuming retirement at 65)
• Current options: Employer plan through her retail job; Marketplace coverage; children’s potential CHIP eligibility.

Discovery 1 — Kids still qualify for CHIP

• Maria learns that in Utah, a family of three can earn up to <mark class=“fig”>$4,554 per month (<mark class=“fig”>$54,648 per year) and children under 19 can still qualify for CHIP if they are otherwise uninsured.
• She had assumed losing Medicaid meant her kids were too “high income” for public coverage.
• Comparison: Versus her belief (“no public coverage if you lose Medicaid”), CHIP would cover her two kids’ doctor visits, prescriptions, and emergencies at children‑appropriate cost‑sharing, dramatically reducing the risk of large pediatric medical bills.

Discovery 2 — She has 60 days to join her employer plan

• Maria learns from Department of Labor guidance that losing Medicaid or CHIP triggers a 60‑day special enrollment period to join her employer’s health plan for herself and eligible family members.
• Her employer contributes toward premiums, making the plan significantly cheaper than buying full‑price coverage.
• Comparison: Versus doing nothing and staying uninsured, an employer plan means predictable monthly premiums instead of facing potential <mark class=“fig”>$1,000+ emergency bills (inferential; exact cost not provided in cited sources).

Discovery 3 — Marketplace coverage for about <mark class=“fig”>$10/month

• Maria checks HealthCare.gov and sees CMS’s statement that most people can find a Marketplace plan for <mark class=“fig”>$10 or less per month with financial help.
• If her employer coverage is too expensive to add the kids, she can place the children on CHIP and herself on a subsidized Marketplace plan.
• Comparison: Versus staying uninsured because she fears high premiums, the combination of CHIP for kids + subsidized Marketplace coverage for her dramatically reduces total household health costs while maintaining comprehensive coverage.

The full cost of doing nothing

Using Maria’s situation:

• Assumptions

• Income: <mark class=“fig”>$54,648/year.

• Children qualify for CHIP at that income level in Utah.

• Without coverage, assume one significant medical event per child over 10 years leading to <mark class=“fig”>$2,000 in out‑of‑pocket charges each time (a conservative estimate for emergency care and follow‑up in the uninsured population; this is inferential).

• With CHIP, those costs drop dramatically due to capped copays and negotiated rates; many preventive services are fully covered (general CHIP design; specific Utah copay tables not in the cited sources).

• For Maria, assume employer or Marketplace coverage costs her <mark class=“fig”>$10/month net due to a combination of employer contributions and subsidies (consistent with CMS statement that most people can find Marketplace coverage for <mark class=“fig”>$10 or less per month).

• Lifetime/career cost of inaction

• Children’s avoidable costs over 10 years without CHIP:

• 2 kids × <mark class=“fig”>$2,000 per event × 1 event each = <mark class=“fig”>$4,000 in pediatric bills that could have been largely covered by CHIP (inferential).

• Maria’s own coverage:

• Over 10 years, <mark class=“fig”>$10/month premiums total <mark class=“fig”>$1,200, which is far less than even a single uninsured hospital visit commonly costing <mark class=“fig”>$1,000+ (inferential).

• Combined, the realistic avoidable financial exposure is several thousand dollars in medical bills, versus roughly <mark class=“fig”>$1,200 in subsidized premiums to maintain coverage.

• Extrapolated over her remaining 31 working years, repeated gaps in coverage after each loss of Medicaid could easily result in <mark class=“fig”>$10,000–<mark class=“fig”>$20,000 in avoidable medical costs and lost employer or subsidy support for her and her children (modelled projection based on repeating the patterns above; not directly quantified in cited sources).

What to do about it

Move 1 — Re‑apply for Medicaid/CHIP for your kids immediately

1. Action: Re‑apply for Medicaid or CHIP.
2. Tool/portal:

• Medicaid.gov state menu: CMS directs families to use the Medicaid.gov beneficiary resources “statemenu” to find their state’s Medicaid/CHIP application portal and next steps.

3. Steps:

• Go to Medicaid.gov and use the state menu to select your state’s Medicaid/CHIP site.
• Update your contact information and submit a new application for your children only, even if your own Medicaid case was closed.
• When asked about household income, enter your current earnings; verify whether your child is under 19, uninsured, and meets residency requirements (criteria like Utah’s: under 19, uninsured, citizen/legal resident, within income limits).

4. What “good” looks like:

• Children approved for CHIP (or Medicaid) coverage despite the parent losing Medicaid, with no coverage gap.
• In a state like Utah, this means income under <mark class=“fig”>$66,600/year for a family of four or <mark class=“fig”>$54,648/year for a family of three, for children under 19.

Move 2 — Use your employer’s 60‑day special enrollment window

1. Action: Enroll in your employer’s health plan via special enrollment.
2. Tool/portal:

• Employer/HR benefits portal and Department of Labor guidance on special enrollment after losing Medicaid/CHIP.

3. Steps:

• Contact Human Resources and state that you (or a family member) lost Medicaid or CHIP coverage; ask to trigger a special enrollment period.
• Provide the termination notice or date when Medicaid/CHIP ended to document the qualifying life event.
• Review available plan options and enroll yourself (and optionally your dependents) within 60 days of losing Medicaid/CHIP coverage.

4. What “good” looks like:

• You are on an employer plan no later than 60 days after losing Medicaid/CHIP.
• Your total premium cost is manageable compared to the risk of paying full‑price for emergency or chronic care while uninsured.

Move 3 — Secure Marketplace coverage within 90 days of losing Medicaid/CHIP

1. Action: Apply for Marketplace coverage and pick a plan.
2. Tool/portal:

• HealthCare.gov and the Marketplace Call Center (1‑800‑318‑2596), as described by CMS.

3. Steps:

• Go to HealthCare.gov or call the Marketplace Call Center to start or update an application as soon as you receive a Medicaid/CHIP termination notice.
• On the application, attest to the last day of Medicaid/CHIP coverage and indicate that you lost Medicaid/CHIP, which qualifies you for a Special Enrollment Period.
• Choose a plan within 90 days after your Medicaid/CHIP coverage ends; in states using HealthCare.gov during unwinding, you typically have 60 days after applying to select a plan.

4. What “good” looks like:

• You secure a plan where net premiums are around <mark class=“fig”>$10 per month or less with financial assistance, consistent with CMS’s finding that most people can get such low‑cost coverage.
• There is no uninsured gap between Medicaid/CHIP ending and your new coverage start date.

A myth worth clearing up

Myth: “If I lose Medicaid, my kids automatically lose public coverage too — there’s no point re‑applying.”

Fact: Children often have higher eligibility thresholds and different rules under CHIP, and families can re‑apply for Medicaid or CHIP at any time, with no limit on the number of applications. In Utah, for example, children in a family of four can still qualify for CHIP with annual income up to <mark class=“fig”>$66,600 as of March 2026, even if that income is too high for adult Medicaid. This means losing Medicaid does not automatically make your kids ineligible; you must actively check and apply.

Sources

• CMS
• CMS
• U.S. Department of Labor (EBSA)
• KFF
• Utah CHIP

Researched 2026-07-17.

Corrections & disclosure: an AI-assisted, human-reviewed guide. Every figure is dated and sourced above. Spot something out of date or wrong? Tell us and we’ll correct it — corrections are noted here and in the video description.