The California Healthy Families Program (HFP) is the California implementation of the federal Children's Health Insurance Program (CHIP) that provides low cost insurance offering health, dental, and vision coverage to children who do not have insurance today and do not qualify for no-cost Medi-Cal.
The California Healthy Families Program covers children who do not have insurance today and do not qualify for no-cost Medi-Cal for free.
It is definitely incorrect because the context says it is low cost, while the statement says it is free. This was probably difficult for the system because the statement includes multiple true things from the context.