California Healthcare for Indigents Program (CHIP) and Rural Health Services (RHS) Program

In 1989, the Legislature established the California Healthcare for Indigents Program (CHIP) and the Rural Health Services (RHS) Program, which allocate Proposition 99 (Tobacco Tax) funds to participating counties. These funds reimburse providers for uncompensated services for individuals who cannot afford care and for whom no other source of payment is available.  In order to receive CHIP or RHS funds, counties agree to: 1) maintain a financial level of effort; 2) report expenditure and utilization data to the Department; and 3) provide medically necessary follow-up treatment to eligible children.