What Is It?
The Children's Health Insurance Program Reauthorization Act of 2009 (CHIPRA) requires that employers notify their employees of health insurance premium assistance subsidies that might be available under the state Medicaid Children's Health Insurance Program (CHIP).
What Employers and Plans Must Provide It?
An employer must provide the CHIPRA notice if it has any employees who live in states that provide CHIP subsidies and sponsors any group health plan subject to HIPAA (except retiree only plans and HIPAA-excepted benefits like standalone dental, vision and accident coverage). Note that it does not matter where the employer is located; what matters is where the employees live.
What Must the Notice Say?
CHIPRA simply requires that the notice inform employees of potential opportunities then currently available in the state in which the employees reside for CHIP premium assistance under Medicaid for health coverage of employees or their children. DOL annually publishes on its website a model notice with updated state agency contact information. The current version can be found here; look for "Model Notice for Employers Regarding Premium Assistance Opportunities."
Who Must Get the Notice?
Employers must provide a CHIPRA notice to any employee—whether full-time or part-time, benefits-eligible or not—who lives in one of the 38 states that provide CHIP subsidies. The CHIPRA notice need not be given to employees in states that do not provide CHIP subsidies.
When Must the Notice Be Provided?
The CHIPRA notice must be distributed annually, but there's no specific timing requirement. Employers generally provide the CHIPRA notice during open enrollment; however, because the CHIPRA notice must go to all employees, if it is distributed during open enrollment care should be taken to ensure that employees who are not benefits-eligible also receive the notice.
How May the Notice Be Distributed?
The CHIPRA notice must be provided in a manner reasonably calculated to ensure delivery to employees entitled to receive it, which is DOL-speak for US Mail, courier, hand delivery or electronic delivery under the DOL's electronic delivery safe harbor rules. The notice need not be sent by itself; it may be included with other notices, such as with other open enrollment materials, but within the group of notices, the CHIPRA notice must appear separately and in a manner that ensures that an employee who may be eligible for premium assistance would appreciate its significance.