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February 09, 2010
Model Employer CHIP Notice Published

The Department of Labor has published a model notice for employers to use to inform employees of state-based programs for group health plan premium assistance. As of January 2010, 40 states use funds from their Medicaid or Children's Health Insurance Program (CHIP) to help people who are eligible for employer-sponsored health coverage and need assistance in paying their health premiums. The notice is required in these 40 states.

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In February 2009, President Obama signed the Children's Health Insurance Program Reauthorization Act of 2009 (CHIPRA). CHIPRA included a requirement that the Department of Labor and the Department of Health and Human Services develop a model notice for employers. The Department of Labor was required to provide the model notice to employers within one year of CHIPRA's enactment.

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. The following 40 states offer one or more programs that meet this standard:

  • Alabama,
  • Alaska,
  • Arizona,
  • Arkansas,
  • California,
  • Colorado,
  • Florida,
  • Georgia,
  • Idaho,
  • Indiana,
  • Iowa,
  • Kansas,
  • Kentucky,
  • Louisiana,
  • Maine,
  • Massachusetts,
  • Minnesota,
  • Missouri,
  • Montana,
  • Nebraska,
  • Nevada,
  • New Hampshire,
  • New Jersey,
  • New Mexico,
  • New York,
  • North Carolina,
  • North Dakota,
  • Oklahoma,
  • Oregon,
  • Pennsylvania,
  • Rhode Island,
  • South Carolina,
  • Texas,
  • Utah,
  • Vermont,
  • Virginia,
  • Washington,
  • West Virginia,
  • Wisconsin, and
  • Wyoming.

If a group health plan provides benefits for medical care directly (such as through a health maintenance organization); or through insurance, reimbursement or otherwise 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, its administrator, its insurer, or any other service provider affiliated with the employer or the plan).

Employers are required to provide these notices by the date that is the later of (1) the first day of the first plan year after February 4, 2010; or (2) May 1, 2010. Accordingly, for plan years beginning between from 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).

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