Earlier this month, the Department of Labor (Department) issued an updated model notice for the Children's Health Insurance Program (CHIP). CHIP is a government-sponsored program that offers low-cost healthcare coverage for children whose families are unable to afford premiums under an employer-sponsored group health plan, but do not qualify for Medicaid. In some states, CHIP also provides coverage for pregnant women. Accordingly, employers who sponsor health plans must provide employees with annual notice of CHIP's premium assistance before the beginning of the plan year or risk incurring penalties. All employees should be provided the notice, assuming they are eligible to participate in the health plan—however, if it is easier to send the notice to all employees, that is fine too. Most employers accomplish this by using the Department's model notice, which is available in both English and Spanish.
The model notice's new language is current as of July 31, 2019 and should be distributed with all 2020 health plan notices, or incorporated into the plan's summary plan description. With open enrollment season fast approaching, this is the perfect time for employers to meet their CHIP obligations by including an updated notice in their enrollment materials.
More information about coverage and eligibility under CHIP can be found on healthcare.gov.
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