Medicaid and CHIP Cover Half of U.S. Pediatric Hospitalizations, Study Finds

Medicaid and the Children’s Health Insurance Program (CHIP) are vital sources of coverage for pediatric hospital care, collectively insuring half of all children in the United States. Researchers from Stanford University and other institutions conducted a comprehensive analysis of the 2022 Kids’ Inpatient Database, revealing that Medicaid and CHIP covered 48.3% of all pediatric hospital discharges, with significant representation among newborns, children with complex conditions, and those from low-income and rural communities. Medicaid serves as a critical financial backbone for pediatric inpatient services, accounting for more than half of pediatric hospital charges nationwide in 2022, totaling approximately $119.5 billion. The analysis highlighted disparities, such as rural hospitals’ heavy reliance on Medicaid despite lower patient volumes and a concentration of Medicaid-supported pediatric care in a limited number of urban hospitals. Proposed federal budget reductions under the One Big Beautiful Bill Act (OBBBA) threaten to cut Medicaid and CHIP funding by over half a trillion dollars, potentially eliminating coverage for millions by 2034. These cuts raise concerns about the financial stability of pediatric health systems and access to care for vulnerable populations. Pediatric health experts emphasize the need to safeguard children’s coverage and suggest that substantial program reforms could address longstanding gaps in the nation’s child health insurance policies. They also acknowledge current Medicaid and CHIP frameworks have evolved through fragmented policies, resulting in the United States lacking universal child health coverage among high-income countries. The forthcoming fiscal challenges underscore the importance for health care providers, policymakers, and researchers to document impacts on child health and advocate for coverage continuity and system resilience.