The correct answer to this open question is the following.
The State Children’s Health Insurance Program (SCHIP) was implemented in accordance with the Balanced Budget Act (BBA) to allow states to create or expand existing insurance programs, providing more federal funds to states for the purpose of expanding Medicaid eligibility to include a greater number of currently uninsured children.
The State Children’s Health Insurance Program (SCHIP) was created to provide insurance coverage to children. The requisite to receive this insurance coverage is that the family cannot receive Medicaid because they earn too much to qualify for it, but are not able to pay for private insurance coverage. SCHIP helps the family to pay for medical assistance, hospitalization, and immunizations.