Benefits Law
Alert
DEPARTMENT OF LABOR RELEASES MODEL CHIPRA
NOTICE
On February, 4, 2009, the Department of
Labor ("DOL") issued a Model Employer CHIP Notice
("Notice") that employers may use meet the notice
requirements under the Children's Health Insurance
Program Reauthorization Act of 2009 ("CHIPRA").
Pursuant to CHIPRA, employers who maintain
a group health plan for employees who reside in a
state that provides premium assistance under
Medicaid or a state child health insurance program
("CHIP") must provide those employees with a
notice describing the potential opportunities for
state Medicaid or state CHIP premium
assistance. Each employee residing in a
state that provides for premium assistance is
entitled to receive the Notice, regardless of the
employee's enrollment in the group health
plan. This notice obligation is based on the
employee's state of residence, not the employer's
business location.
The Notice identifies each of
the forty states that currently provide premium
assistance under Medicaid or CHIP, and provides
contact information for each state.
Employers are required to provide this notice by
the later of May 1, 2010 or the first day of the
plan year beginning after February 4, 2010 (e.g.
January 1, 2011 for calendar year plans).
Thereafter, the notice must be given at least
annually and can be combined with other plan
information (e.g. open enrollment materials) as
long as the notice appears separately and in a
manner that ensures that an employee who may be
eligible for premium assistance could reasonably
expect to appreciate its significance.
An employer's failure to comply
with the employee notice requirement may result in
a penalty of $100 per day for each individual to
whom the failure relates.
To obtain the model
Notice from the DOL's website, click here.
If you have any questions, please
contact:
