How do states determine eligibility?

Children and pregnant women must meet financial and non-financial criteria to be eligible for CHIP. Financial eligibility, or income eligibility, is based on Modified Adjusted Gross Income (MAGI). MAGI is used to determine financial eligibility for Medicaid, CHIP, and premium tax credits and cost sharing reductions available through the health insurance marketplace. By using one set of income counting rules and a single application across programs, the Affordable Care Act made it easier for people to apply and enroll in the appropriate program. To be eligible for CHIP, individuals must also meet certain non-financial eligibility criteria. CHIP beneficiaries generally must be residents of the state in which they are receiving CHIP. They must be either citizens of the United States or certain qualified non-citizens, such as lawful permanent residents. In addition, some eligibility groups are limited by age, or by pregnancy status.