On January 31, 2020, the Department of Labor (DOL) released a new model employer Children’s Health Insurance Program (CHIP) Notice with updated relevant Children’s Health Insurance Program (CHIP) state information for 2020. A CHIP Notice, informs benefit-eligible employees that their state’s CHIP or Medicaid program may offer premium assistance to help them pay for group health plan coverage. The notice is mandatory for employers to provide to their employees when they initially become eligible for an employer’s group health plan and then at least once a year thereafter when an employer offers a group health plan in a state that provides premium assistance for coverage.
Due to the annual delivery requirement employers may choose to issue the CHIP notice along with:
- Materials notifying the employee of their health plan eligibility;
- Materials provided to the employee in connection with an open enrollment or certain qualified life events conducted under the plan; or
- The summary plan description (SPD).
Or an employer can choose to issue the notice on its own.
The updated model notice that the DOL has provided is their own version of the CHIP notice and employers are not required to use this notice. As such, an employer can draft a notice of their own. However, should an employer choose to use their own notice, it is recommended that legal counsel be consulted. For a list of participating states or to review the revised notice, please visit the DOL website
Contact your Cowden representative for more information on this or other compliance issues.