Children in 13 of the largest school districts outside Chicago will be sent home with application forms during the first week of school.
The forms let people enroll in either FamilyCare or KidCare, two health programs that are expanding this year.
Officials say a family of four can make up to $25,000 a year and still qualify. That's up from the old cutoff of about $20,000.
The state has money to provide insurance for an additional 56,000 parents and 20,000 children.