The Department of Labor (DOL), through its Employee Benefits Security Administration (EBSA), has released a new model Employer CHIP Notice with information current as of July 31, 2024. This update is the latest since its last in January of 2024. See the prior Leavitt Group article Employee Benefits Mandated Notices See Update to Children’s Health Insurance Plan (CHIP) Notice.
As a reminder, the Children’s Health Insurance Program Reauthorization Act of2009 (CHIPRA) imposes an annual notice requirement on employers that maintain group health plans in states that provide premium assistance subsidies under a Medicaid plan or a Children’s Health Insurance Plan (CHIP). An employer can choose to provide the notice on its own or concurrent with the furnishing of:
- Materials notifying the employee of health plan eligibility;
- Materials provided to the employee in connection with an open enrollment season or election process conducted under the plan, such as along with a legal notices packet often provided at open enrollment or other enrollment (contact your Leavitt Group representative for access to your notices packet, if you need one); or
- The Summary Plan Description (SPD).
Covered Employers
An employer is subject to this annual notice requirement if its group health plan covers participants who reside in a state that provides a premium assistance subsidy, regardless of the employer’s location. The states offering premium assistance programs for children vary by state in how those subsidies are provided. See the notice for which states provide such subsidies.
The DOL’s model notice, which employers may use for this disclosure, is updated periodically to reflect changes in the states that offer premium assistance subsidies. The DOL’s model Employer CHIP Notice includes information current as of July 31, 2024. Employers could also choose to prepare their own notices, or modify the model notice. Employers should be sure to include at least the minimum relevant state contact information for any employee residing in a state with premium assistance.
CHIPRA Notice Requirements
- Employers that maintain group health plans in states with premium assistance subsidies must provide their employees with an annual notice.
- The DOL has a model notice for employers to use.
- Employers could also choose to prepare their own notices or modify the model notice.
The DOL updates the model notice most years to reflect any changes in the number of states offering premium assistance programs, as well as the contact information for those states. For more information on the legal notices mandated for your group health plan, contact your Leavitt Group representative.
Source: Zywave. Republished with permission. Some content by Leavitt Group.