The Department of Labor (DOL) has released a new model Children’s Health Insurance Program (CHIP) Notice for employers, the information released is current as of January 31, 2022. The notice is updated periodically to reflect any changes in states that offer premium assistance subsidies together with the contact information for those states. Plan sponsors of group health plans should begin using this updated notice.
Under the Children’s Health Insurance Program Reauthorization Act of 2009 (CHIPRA), group health plans and group health insurance issuers must offer special enrollment opportunities to individuals who are eligible for, but not enrolled in a group health plan when they:
- Become eligible for premium assistance subsidies; or
- Lose eligibility for coverage under a State Medicaid or CHIP program.
The employee or dependent must request coverage within 60 days of being terminated from Medicaid or CHIP coverage, or within 60 days of being determined to be eligible for premium assistance.
Employer Next Steps
Employers offering a group health plan to employees residing in a state that provides CHIP or Medicaid premium assistance must provide the notice to all employees each year, regardless of enrollment status. Most employers find it to be simpler to issue the notice to all employees rather than to verify each employee’s residence.
Employers may use the DOL’s model notice, which is available in English and Spanish, to meet the disclosure requirement. The notice may be provided:
- With the plan’s open enrollment materials;
- With materials notifying the employee of health plan eligibility;
- With the plan’s summary plan description (SPD); or
- As a separate document.
It can be delivered in written form or electronically, in compliance with the DOL’s electronic disclosure rules.
Please contact your Client Account Manager or email your group email with any questions about this disclosure requirement.
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This content is provided with the understanding that HR Knowledge is not rendering legal advice. While every effort is made to provide current information, the law changes regularly and laws may vary depending on the state or municipality. The material is made available for informational purposes only and is not a substitute for legal advice or your professional judgment. You should review applicable laws in your jurisdiction and consult experienced counsel for legal advice. If you have any questions regarding this content, please contact HR Knowledge at 508.339.1300 or email us.