If your company sponsors a calendar-year group health plan, don’t forget to send all eligible employees a CHIP model Notice.
Updated CHIP Model Notice Now Available for Employers
An updated CHIP model notice for employers to provide information on eligibility for premium assistance under Medicaid or the Children’s Health Insurance Program (CHIP) is now available for download from the U.S. Department of Labor (DOL).
The updated CHIP model notice includes information on how employees can contact their state for additional information and how to apply for premium assistance, with information current as of August 10, 2017.
What you need to know about the CHIP Notice
The CHIP Notice must be sent annually – not just to plan participants but also to each employee who is or might become eligible for employer group health benefits. The CHIP Notice informs eligible employees of their possible right to receive financial assistance through Medicaid and the Children’s Health Insurance Program (CHIP) to pay for premiums for health coverage under the employer’s plan.
The notification applies only to employees who are or become eligible for employer health coverage. So, it seems logical to send the CHIP Notice only to employees who are eligible for employer health coverage. However, employers who prefer to err on the side of caution may wish to also notify employees who could become eligible even if the employee is not currently eligible to enroll.
The law requires that the CHIP Notice be sent by each employer that maintains a group health plan in a State that provides premium assistance under a State Medicaid plan, the Social Security Act, or a State child health plan. This notice requirement applies even if the employer’s location or principal place of business is not in one of the states listed in the model notice.
The CHIP Notice may be mailed to eligible employees by first-class mail or distributed electronically in compliance with the DOL’s electronic notice distribution rules.
An employer may provide the notice applicable to the state in which an employee resides concurrent with the furnishing of:
- Materials notifying the employee of health plan eligibility
- Materials provided to the employee in connection with the open enrollment period
- The summary plan description (SPD)
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