The U.S. Department of Labor’s Employee Benefits Security Administration (EBSA) earlier this year released the model Employer Children’s Health Insurance Program (CHIP) Notice. The Notice, required under the Children’s Health Insurance Program Reauthorization Act of 2009 (CHIPRA), is intended to assist employers in complying with their notification requirements to employees about possible opportunities for premium assistance and receiving medical coverage under an employer’s group health benefit plan. See EBSA Web Site.
Notice Content
The CHIP Notice conveys to employees basic information about premium assistance programs through Medicaid or state Children’s Health Insurance Programs in certain specific states. The Notice is intended to provide information about the availability of premium assistance, a Health Insurance Portability and Accountability Act (HIPAA) special enrollment right that may be triggered by eligibility for premium assistance, and a list of contact information for specific state Medicaid and CHIP agencies, current as of February 2010. The EBSA intends to update the model notice annually so as to keep the contact information accurate. See the DOL’s Model Notice.
Effective Dates
The CHIP Notice must be provided by: (1) May 1, 2010 for plan years that begin between February 4, 2010 and May 1, 2010; or (2) the first day of the plan year for any plan year starting after May 1, 2010 (January 1, 2011 for calendar year plans).
Distribution and Timing Requirements
The Notice must be sent to all employees who reside in states that offer premium assistance programs through Medicaid or CHIP, regardless of their enrollment status. An employer is subject to the notice requirement if it provides medical coverage to employees who reside in such states, without regard to the employer’s location. The Notice must be provided automatically and free of charge on an annual basis. The Notice may be distributed with annual enrollment and new hire packages ahead of the effective date.