In 1996, 4.3 million uninsured children (37% of all uninsured children) had parents who were either insured through their own employment or were offered employment-based coverage and declined it. Because nearly all employers who offer health insurance to their workers also offer dependent coverage, most of these children were presumably eligible for employer-based insurance. Probably they remain uncovered because their parents cannot afford required employee contributions. These children are the target population for state programs that plan to use state Children's Health Insurance Program (S-CHIP), Medicaid or state-only funds to buy into employer-based coverage for eligible children.