The Children’s Health Insurance Program Reauthorization Act of 2009 (“CHIPRA”) allows states to offer financial assistance to certain eligible low-income families to subsidize or pay the costs associated with obtaining employer-sponsored healthcare coverage. This assistance often comes in the form of premium assistance subsidies. Employers who offer a group health plan and have employees living in a state that provides these premium assistance subsidies must provide eligible employees with a CHIP notice each calendar year.
Employer Action Items
- Review the DOL’s model CHIP notice and customize it, if needed.
- Distribute the notice annually to employees via the DOL’s rules for electronic delivery.
- Keep records of notice distribution.
Summary
The DOL released an updated model notice with an effective date of July 31, 2024. The notice informs employees about potential opportunities for financial assistance with purchasing health insurance through Medicaid or CHIP in their state of residence. The notice requirement applies regardless of where a company is located and must be disseminated to all employees residing in a state with a premium assistance program, regardless of enrollment status.
Additional Resources
U.S. Department of Labor CHIP Model Notice Template https://www.dol.gov/agencies/ebsa/laws-and-regulations/rules-and-regulations/public-comments/2010-2409
For more information
We’re ready when you are. Get in touch and a friendly, knowledgeable Baldwin advisor is prepared to discuss your business or individual needs, ask a few questions to get the full picture, and make a plan to follow up.
This document is intended for general information purposes only and should not be construed as advice or opinions on any specific facts or circumstances. The content of this document is made available on an “as is” basis, without warranty of any kind. The Baldwin Insurance Group Holdings, LLC (“The Baldwin Group”), its affiliates, and subsidiaries do not guarantee that this information is, or can be relied on for, compliance with any law or regulation, assurance against preventable losses, or freedom from legal liability. This publication is not intended to be legal, underwriting, or any other type of professional advice. The Baldwin Group does not guarantee any particular outcome and makes no commitment to update any information herein or remove any items that are no longer accurate or complete. Furthermore, The Baldwin Group does not assume any liability to any person or organization for loss or damage caused by or resulting from any reliance placed on that content. Persons requiring advice should always consult an independent adviser.
The Baldwin Group offers insurance services through one or more of its insurance licensed entities. Each of the entities may be known by one or more of the logos displayed; all insurance commerce is only conducted through The Baldwin Group insurance licensed entities. This material is not an offer to sell insurance.
