The U.S. Department of Labor (DOL) has issued a model notice to meet the requirement to inform employees of opportunities for group health plan premium assistance under Medicaid or the Children's Health Insurance Program (CHIP) in their state of residence.
The model Employer CHIP Notice was published in the Feb. 4, 2010, issue of the Federal Register. A text version (MS-Word) is available at the DOL site.
CHIP Reauthorization
The Children's Health Insurance Program Reauthorization Act of 2009 (CHIPRA or Public Law 111-3) reauthorized the Children's Health Insurance Program (CHIP). This reauthorization allows states to use CHIP funds to offer a "premium assistance subsidy" to all targeted low-income children who are eligible for child health assistance under a qualified employer-sponsored plan, if the state determines that it is more cost effective to enroll them in the employer plan than maintain them in the state plan.
CHIP Notification
Among other things, CHIPRA requires employers offering group health plans to notify all employees of their potential CHIPRA rights to receive premium assistance under a state's Medicaid or CHIP program. These requirements apply to employers that offer medical care benefits in any of the 40 states that provide premium assistance through employer-based plans. As of January 22nd, 2010 Minnesota, Iowa, Wisconsin and North Dakota are among the 40 states.
Employers may combine this notice with other information (e.g., open enrollment materials). If a group health plan provides benefits for medical care directly or through insurance to participants, beneficiaries or providers in one of these states, the plan is required to provide the Employer CHIP Notice, regardless of the employer’s location or principal place of business (or the location or principal place of business of the group health plan).
Employee Notification Deadlines
All plan years beginning from February 5, 2010 through April 30, 2010 must provide the CHIP notice by May 1, 2010. For employers whose next plan year begins on or after May 1, 2010 the notice must be provided by the first day of the next plan year. The notices must be provided annually.
The DOL plans to update the notice annually, with current information about which states are providing premium assistance programs.
Fines
Employers who do not comply with the notice and disclosure requirements can be fined up to $100 per day per violation.
It is up to you, the employer, to send out this notice.