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 CHIP notice.
The CHIP notice lets employees know about premium assistance opportunities to help with paying for health coverage. The notice must be given to all employees (not just those enrolled in the health plan 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 updated the CHIP notice. A copy of the recent notice may be accessed by clicking on the “Model Notice” link in the DOL website which may be found by clicking here.