04/29/2010
DOL model notice assists CHIPRA notifications
The U.S. Department of Labor (DOL) has published a model notice to help employers comply with notifications required by the Children's Health Insurance Program Reauthorization Act (CHIPRA). Congress enacted CHIPRA last year to extend and expand the Children's Health Insurance Program.
CHIPRA imposes a notice requirement on employers that maintain a group health plan with participants or beneficiaries (e.g., employees, dependents, COBRA-qualified beneficiaries, etc.) residing in one or more states that provide a premium assistance subsidy. The notice must be provided to all employees residing in each premium assistance subsidy state, including employees not enrolled in the plan. The purpose of the notice is to provide employees with information concerning the potential opportunities for premium assistance for themselves and their families in the state where they reside.
The DOL's model notice is on the EBSA website. The first notice must be provided annually, free of charge and by no later than the first day of the first plan year beginning after Feb. 4, 2010, or May 1, 2010, if later. As a result, for employers with calendar-year plans, the notice must be provided by Jan. 1, 2011.
The notice may be provided with enrollment packets, open season materials or the summary plan description, but must appear "separately and in a manner which ensures that an employee who may be eligible for premium assistance could reasonably be expected to appreciate its significance", according to the DOL. Employers that fail to issue these notices are subject to penalties of up to $100 per day per employee.
To learn more, view the DOL Fact Sheet.
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