On February 4, 2009, President Obama signed the Children's Health Insurance Program Reauthorization Act of 2009 (CHIPRA). CHIPRA included a requirement that the Departments of Labor and Health and Human Services develop a model notice for employers to use to share with their employees. This notice informs employees of potential opportunities currently available in the state in which the employee resides for group health plan premium assistance under Medicaid and the Children's Health Insurance Program CHIP.

On February 4, 2010, The Department of Labor released the model notice.

WHAT THIS MEANS TO YOU AS AN EMPLOYER?
CHIPRA requires employers offering group health plans to notify all employees (regardless of enrollment status) of their potential CHIPRA rights to receive premium assistance under a state’s Medicaid or state CHIP program.

The requirement applies to employers that offer medical care benefits to employees residing in any of the 40 states that currently provide premium assistance.

The State is which the employee resides may or may not be the same as the state in which the employer, the employer's principal place of business, the health plan, its insurer, or other service providers are located.

The 10 states that do not currently provide premium assistance are: Connecticut, Delaware, Hawaii, Illinois, Maryland, Michigan, Mississippi, Ohio, South Dakota and Tennessee.

WHAT SHOULD I DO NEXT?
Employers must send the notice annually, starting with the first plan year after February 4, 2010. For plan years from February 4, 2010, through April 30, 2010, the initial notice deadline is May 1, 2010. For plan years starting after May 1, 2010, the notice deadline is the first day of the next plan year. For example, the deadline would be January 1, 2011, for calendar year plans.

Employers may combine this notice with other information (e.g., open enrollment materials) as long as it goes to the entire employee population, not just participants.

For a copy of the model notice CLICK HERE.

Corporate Synergies will continue to release information and guidance as to how the carriers will be administering this new legislation as it is released.

If you have any additional questions regarding the information within this eCommunication, please call Corporate Synergies at 1.866.CSG.1719 or CLICK HERE to contact us today.

Corporate Synergies is pleased to provide regular updates on issues affecting group benefits insurance. As an insurance broker and consultant, Corporate Synergies is proactive in monitoring federal and state legislative and regulatory activity to ensure that you stay informed. Our customers call us their “Dedicated Advocates”. We work on your behalf.