Federal Update - Employer CHIP Notice Requirement

Federal Update - Employer CHIP Notice Requirement

On February 4, 2009, President Obama signed the Children's Health Insurance Program Reauthorization Act of 2009 (CHIPRA).  CHIPRA included

a requirement that the Departments of Labor and Health and Human Services develop a model notice for employers to use to inform employees

of potential opportunities currently available in the State in which the employee resides for group health plan premium assistance under Medicaid

and the Children's Health Insurance Program (CHIP).

The U.S. Department of Labor has now published the Employer CHIP Notice. For purposes of the Employer CHIP Notice requirement, an employer

providing benefits (directly or through insurance, reimbursement, or otherwise) for medical care in a State is considered to maintain a group

health plan in that State. If that State provides medical assistance under a State Medicaid plan, or child health assistance

under a State child health plan, in the form of premium assistance for the purchase of group health plan coverage, the employer is required to

provide the Employer CHIP Notice.

Specifically, the employer is required to notify each employee of potential opportunities currently available in the State in which the

employee resides for premium assistance under Medicaid and CHIP for health coverage of the employee or the employee's dependents.  Here is

the model notice which includes specific information for the 40 States this requirement currently applies to:  Employer CHIP Model Notice

http://www.dol.gov/ebsa/chipmodelnotice.doc.  (Currently the notice does not apply to the following states:  CT, DE, HI, IL, MD, MI, MS, OH, SD, and TN. 

The notice and list will be updated annually on the U.S. Department of Labor's website to reflect any changes.) 

For plan years beginning between February 4, 2010 through April 30, 2010, the Employer CHIP notice must be provided by May 1, 2010.  For

employers whose next plan year begins on or after May 1, 2010, the Employer CHIP notice must be provided by the first day of the next plan

year (January 1, 2011 for calendar year plans).

For full details of the CHIP Model Notice requirements, click here: Federal Register CHIP Notice http://www.dol.gov/federalregister/PdfDisplay.aspx?DocId=23521