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Revision 25-3; Effective July 1, 2025
CHIP, CHIP Perinatal
Third-party resources (TPR) are sources of payment for medical expenses not the recipient or Medicaid. TPR includes payments from private and public health insurance and from other liable third parties that can be applied toward the recipient’s medical expenses. Note: Separate dental or vision plans, auto, workers’ compensation, county medical discount cards, student accident, travel insurance or sports-related insurance are not considered TPRs.
Consider Medicare a TPR. Do not certify a Medicare recipient for the Children’s Health Insurance Program (CHIP) or CHIP perinatal.
CHIP
Households that have health insurance where the monthly premium amount for the child or children is:
- less than 5% of the household's net income in the application month are not eligible for CHIP coverage.
- 5% or more of the household's net income in the application month are eligible for CHIP coverage. However, the household must drop the insurance before CHIP coverage begins. Children cannot be covered by CHIP and health insurance at the same time. These children are not subject to the 90-day waiting period.
Households that have health insurance where the monthly premium amount for the family’s coverage that includes the child or children is:
- less than 9.5% of the household’s net income in the application month are not eligible for CHIP coverage.
- 9.5% or more of the household’s net income in the application month are eligible for CHIP coverage. However, the household must drop the insurance before CHIP coverage begins. Children cannot be covered by CHIP and health insurance at the same time. These children are not subject to the 90-day waiting period.
When the family reports a TPR at application or redetermination, send Form H1020, Request for Information or Action, to request:
- the coverage end date;
- the monthly premium amount for the child or children or for family coverage that includes the child or children; and
- information to verify the insurance policy.
Deny the CHIP Eligibility Determination Group (EDG) if the household does not provide the verification by the due date, and the verification is required for all certified group members. If the verification is not required for all members, only the affected person will be disqualified.
Acceptable verification of the private health insurance end date includes:
- health insurance ID card indicating the end date;
- letter from the employer indicating the end date; or
- the person's statement by phone or in writing.
If a household reports that it has obtained health insurance during the continuous enrollment period, document the change. Process the change at the next redetermination.
The Texas Integrated Eligibility Redesign System (TIERS) pends the TPR logical unit of work at redetermination when HHSC receives TPR information by the TPR interface for a child currently eligible for or enrolled in CHIP.
When a household reports a new child in the household, and the child is potentially eligible for CHIP, address TPR requirements following application procedures. Deny the CHIP EDG if the child has an active TPR but does not meet any of the good cause exemptions.
CHIP Perinatal
Pregnant women with any type of private health insurance are not eligible for perinatal coverage, even if the current health insurance does not provide maternity coverage. Pregnant women cannot be covered by perinatal and private health insurance at the same time.
The 5% and 9.5% rules for monthly premium costs compared to the household’s monthly net income do not apply to CHIP perinatal.
Related Policy
Adding a New Child, D-1433.1
Third Party Resources Changes, D-1437
Health Insurance, D-1632.2
Good Cause Exemptions for Children Subject to the 90-Day Waiting Period, D-1723.6
Exceptions to the Continuous Enrollment Period, D-1731