All employers with group health plans in states that provide premium assistance for the purchase of group health coverage under a Children's Health Insurance Program ("CHIP") or Medicaid must provide notice of the assistance to their employees. Virtually all states provide such assistance, so almost all sponsors of group health plans must have processes and procedures in place to deliver the federally required notice.
The so-called "CHIP Notice" informs employees of possible premium assistance opportunities. It must be distributed to all employees annually before the start of each plan year. The CHIP Notice has certain content requirements and must be written in a manner that is easily understood. It may be distributed by mail or electronically (if federal electronic distribution requirements are followed).
The Department of Labor regularly updates information that must be included in the CHIP Notice, so employers should be sure to use the most recent information available.