Health Insurance for Children

The Children’s Health Insurance Program (CHIP), also known as State Children’s Health Insurance Program (SCHIP) was created in 1997, to provide health insurance for children whose families that were over eligibility limits for Medicaid programs, but couldn’t afford private insurance. The CHIP is financed by both the Federal and State governments, with each State being allowed to customize the child health insurance program to suit its own people and their needs. For all health insurance for children, elements like eligibility, benefits, payment levels, design of the program, and administrative processes are left to the State government to decide. Every State and Territory has a SCHIP coordinator to administer and oversee the program of health insurance for children, along with waivers and demonstrations.

With the new Children’s Health Insurance Program Reauthorization Act (CHIPRA) of 2009, the previously existing Children’s Health Insurance Program has been authorized to provide child health care insurance for children whose families currently use the Program, and financed until 2013 to reach out to the millions of uncovered children in the United States. Currently, children and expecting mothers already covered by this child health care insurance program, and uninsured children and pregnant women from low-income groups will be able to access benefits. In most states, children who are 18 years and below from four-member families earning up to $44,500 a year are eligible for CHIP coverage.

The child health insurance plan under CHIP includes dental care, oral restructuring and emergency dental treatment, eye care, doctor visits, prescriptions, hospitalization, and medical equipment, etc, depending on the State package design.

Medicaid and Child Health Care Insurance

Medicaid provides child health insurance plans for low-income families that fit eligibility norms set by the Federal and State government. Here too, each State designs and defines the benefits and procedures of the child health insurance plan. In this case, payments are made to health providers and not to individuals who are covered. In some states, a percentage or minimum amount of the total cost may be required from covered individual or family.

Eligibility of this child health care insurance program depends on age of child, whether they are disabled or blind, as well as status of citizenship. Children who are residents with parents or guardians who are not citizens may be eligible also. Not all American citizens are eligible for child health insurance plans, even if income is low, but it is best to apply for Medicaid if there is a possibility so that a qualified professional can evaluate the case.

Every State, District and Territory has representatives or administrative bodies for CHIP or Medicaid that are responsible for overseeing child health care insurance procedures in that area. A portion of tax dollars is allocated for child healthcare insurance and benefits that can help a family in times of medical or health emergencies, and new laws make it easier for families to access financial help in these times. Providing adequate coverage through a child health insurance plan in the case of any health or medical emergency now can help avoid unnecessary worry and expenditure later. Parents and guardians will find it worth their time to meet and discuss child healthcare insurance and eligibility with a qualified caseworker of either program.

References:

1. Oral Health Coverage Plans. Insure Kids Now
2. Overview: Medicaid. Centers for Medicare and Medicaid Services
3. Overview: CHIPRA. Centers for Medicare and Medicaid Services

Dependent Day Care Flexible Spending Account Benefits

Working parents know how expensive it can be to provide quality childcare for their kids. A dependent day care flexible spending account, or more commonly known as the ‘cafeteria plan’, is an employer sponsored account which allows you to set aside portions of your income in the form of pre-tax dollars and use them for your childcare expenses. Over 90% of employers offer these dependent care FSA programs now and it is up to you to decide how much you would like to set aside each month. The dependent care flexible spending account can be used for daycares, babysitters, summer camps, nurseries or any other childcare related expenses. The dependent care flexible account helps you reduce your total dependent care expenses as you would end up spending much more if you paid for these services with after-tax dollars.

FSA Eligible Items: How It Works

The dependent care flexible spending account is a completely voluntary plan. If your employer offers this plan then you must determine if it is beneficial for you and how to make it work for you. In order to determine FSA eligible expenses, your child must be under the age of 13 or you must be caring for a dependent unable of self-care. The dependent care flexible spending account benefit can be claimed if you and your spouse are both working while you pay someone else to take care of your children. The dependent care FSA allows you to set aside up to $5000 every year. The amount you choose is deducted from your payroll and put into a separate account. After claiming tax-free reimbursement as FSA eligible items or expenses, this amount can be used to pay for child care needs. The dependent care flexible spending account allows you to reduce your income taxes and thus increase your take-home pay.

Comparing DCFSA to Dependent Care Tax Credit

The federal government allows several programs to help working parents with childcare expenses. These programs are designed keeping various types of families in mind. You must determine which plan works better for you based on your income and needs. The dependent care flexible spending account (DCFSA) is employer sponsored and the dependent care FSA benefits are seen in the form of payroll deductions from pretax dollars. The Dependent Care tax credit, on the other hand, allows a dollar-for-dollar credit on your income tax owed. However, reimbursements are not allowed, thus it proves to be more beneficial for higher income families. It must be kept in mind that only one of these programs can be used at a time so it is essential to choose wisely.

The Dependent Care Flexible Spending Account is very useful for working parents with little children to care for. The financial burden of childcare expenses can be greatly reduced by participating in the dependent care FSA and claiming FSA eligible expenses.

References:

1. Dependent Care Flexible Spending Account (DCFSA) – FSA Feds

Some areas to consider when evaluating childcare:

1. Childcare evaluation: Your child’s safety
Basic safety precautions are not always enough when it comes to small children, especially when it comes to more than a few together in one place. Ask your center for an explanation of the security protocol, fire safety measures, and other health and protection measures around the house. During childcare evaluation, it is particularly important for you to know about the policies of the center for children being dropped and picked up. It is a good idea to take a look around the center and meet some of the other day care professionals there.

2. Childcare evaluation: The center and the professionals
When evaluating childcare, take some time to check the certification and registration status of the center and its employees. Understanding the requirements in your area for applying and receiving these credentials is important as it helps you judge how appropriate your childcare center is. It also means that aspects like health and fire safety measures are taken care of, as well as other major issues. Childcare professionals should have first-aid knowledge and should be able to reach doctors or clinics in case of emergency.

3. Childcare evaluation: The childcare professional
When you talk to your childcare professional, open and honest communication is important. Children are hugely influenced by the type of person your childcare worker is, and the atmosphere of the center. The style of care and discipline, the methods of teaching, the kind of interaction – when evaluating childcare, consider whether these are the kind of handling your child is benefiting from. Other factors that you may want to consider when evaluating childcare: religion (basic principles of a specific religion or none at all), cleanliness (the same habits your child learns at home) and topics of learning (too many new concepts or not enough).

4. Childcare evaluation: Your child
The most important question, naturally, is whether your child is happy. A complete childcare evaluation depends largely on this. A safe environment and an adequate number of adults to supervise is not enough if your child is unhappy at the center. If your child looks forward to going to day care most of the time and has friends there, it shows that your childcare professional is working to make sure all children participate in activities and have a genuine sense of belonging.

Also, during childcare evaluate, judge whether your child’s development is being encouraged and stimulated at the center. Parents have different requirements from their daycare: some prefer it to teach basics like alphabet songs or nursery rhymes for vocabulary development and so that learning at school is easier, while some parents choose not to overburden the child’s young mind with anything apart from healthy social interaction, constructive play and personal behavior and habits

5. Childcare evaluation: You and your childcare center
Your childcare center should make your life easier and better, and if it is not allowing you the space and flexibility you need, you should consider other options. Communication with childcare professionals is important, and a good rapport between you and your daycare center will help you understand your role in making the situation smooth and seamless for your child, for your childcare workers, and for you. Any misalignment of motives or preferences should be considered while evaluating childcare and deciding whether it is still a viable option for you.

References

1. Evaluating childcare. Child Care Aware

2. Childcare evaluation.  North Carolina Dept. of Health & Human Services

If you are thinking of returning to work after having a baby then you are entitled to financial and practical help with childcare:

Parental leave

If you have a child who is under the age of 5 years or a disabled child under the age of 18 then you are entitled to take unpaid time off from work to take care of them. You are entitled to parental leave such as:

• Take 13 weeks off work for each child under the age of 5.
• 18 weeks off work for a child under the age of 18 who is disabled.

Parental leave is different from maternity or paternity leave and is usually unpaid. Parental leave must be taken in full weeks; you can’t for example take the odd day off to take your child to the Doctor’s. You can’t take more than four weeks leave in any one year and must give your employer at least 21 days notice when you want to take parental leave.

Early years education

All children aged 3 and 4 years are entitled to five, two and half daily sessions per week for three terms each year with a registered care provider, the care provider can be a school, nursery or play group

If you work for a large company then they may provide registered early years education within the workplace. You can also choose to use a child minder who is registered as a part of the child minding network.

Working families child tax credit

Child tax credit is a means tested benefit that you may be entitled to if you are a parent of a child in full time education, you may be entitled to receive this benefit if you work for more than 16 hours per week but are on a low income.

The tax credit includes a specific element if you are using registered child care for your child and can help with up to 80% of the cost of your child care. There are limits on the weekly cost of child care and as a rough guide if you pay child care costs for:

• One child – the maximum you could claim is £175 per week.
• Two or more children – the maximum you could claim is £300.

Child maintenance bonus

If you are receiving income support and are receiving child maintenance then you may be eligible for a benefit called the child maintenance bonus, the bonus builds up at £5 per week to a maximum of £1,000 and is paid as a one off lump sump when you find work or you work longer hours and are no longer entitled to income support.

Financial help for young parents

If you are a teenage parent then you may be entitled to financial help if you want to continue your education or training and need help with child care costs. A scheme called the “care to learn scheme” could give you up to £5,000 per year per child for parents up to the age of 20 and who are in education or training.

This benefit is provided to help you with childcare and traveling costs, you must use a registered child minder as your child’s carer and the money will be paid directly to the child care provider.