Pekin Insurance

Employers

“CHIP” Health Benefit Eligibility Notice for All Employees

The U.S. Department of Labor recently issued a model information notice that must be provided to All Employees from an employer with a group health plan. The notice must be distributed as early as May 1, 2010. The notice informs employees of potential state financial assistance to help pay for employer health insurance premiums.

It explains that many states offer premium assistance to employees who are covered on their employer plan but are unable to afford the premiums. Many states use funds from their Children’s Health Insurance Program (CHIP) to assist people eligible for group health insurance, but unable to afford their premiums.

The notice includes information on how an employee may contact the state in which the employee resides for additional information regarding potential opportunities for premium assistance, including how to apply for such assistance.

An employer providing benefits in a state that offers premium assistance is required to provide the Employer CHIP Notice, regardless of the employer’s location. Due to the fact that more than 40 states offer such a program, most employers will likely find it easier to simply send the model CHIP notices to All Employees, rather than to try to send separate notices to employees based on the particular state in which the employees reside.

It is required that employers provided these notices by the date that is the later of (1) the first day of the first plan year after Feb. 4, 2010; or (2) May 1, 2010. For employers whose next plan year begins on or after May 1, 2010, the employer must provide the CHIP notice by the first day of the next plan year. For example, for calendar year plans, the notice must be provided by January 1, 2011. The notice must be provided annually thereafter.

An Employer CHIP Notice must be provided to each employee, not just the employees enrolled in the health plan of the employer.

If you have additional questions or would like a paper copy of the notice, please feel free to contact Group Policyholder Service at 800-322-0160, Extension 2814. We are at your service.