Annually Required CHIP Notice – 2019 Edition

Since 2009, special enrollment rights to immediately enroll in an employer’s health plan arise if an individual becomes eligible for a state premium assistance subsidy under Medicaid or the Children’s Health Insurance Program Reauthorization Act (“CHIPRA”, or often shortened to CHIP). The subsidy helps low-income individuals pay for employer coverage, transferring them from government-sponsored health programs to employer health plans.

CHIPRA imposes a notice requirement on employers who maintain health plans with participants residing in one or more states providing a premium assistance subsidy. The notice must be provided annually to all employees residing in each premium assistance subsidy state, including employees not enrolled in the plan. Model notice language, which is periodically updated, is available in both English and Spanish and includes contact information for each state offering a premium assistance subsidy. Before distributing the notice each year you should check the DOL website for any updates to the model.