This article investigates whether offering parental coverage for public health insurance increases coverage rates among children. Using data from the Current Population Survey (CPS), we examine the effect of parental benefits on participation rates of children in the State Children's Health Insurance Program (SCHIP). Our findings indicate a significant difference in take-up rates for children in states offering parental coverage compared to neighbouring states that did not in the period surrounding the introduction of the SCHIP program (1997-2002). Specifically, states offering parental coverage have greater program participation (on the order of 10% points) among children even after controlling for observable demographic characteristics and the household's position in the income distribution. Thus, extending coverage to the parents of SCHIP-eligible children appears to be an effective strategy to reduce uninsurance rates among children.
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