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New Notice Requirement for Virginia Employers with Group Health Plans


Did You Know That As An Employer, You Now May Have An Additional Legal Requirement With Which To Comply? 

 

On February 4, 2009, President Obama signed the Children’s Health Insurance Program Reauthorization Act of 2009 (“CHIPRA”). CHIPRA extends and expands the State Children’s Health Insurance Program (“SCHIP”).

 
  • CHIPRA contains several provisions that affect employer sponsored group health plans.
  • CHIPRA requires that employers that maintain a group health plan provide written notice of opportunities to employees for premium assistance (through Medicare of Child Health Insurance Program) (“CHIP”) in states where such assistance is available. 
  • Virginia is one of 40 such states. The notice is to be sent to all employees regardless of  enrollment status in states where such premium assistance is available.
 
The Notice

On February 4, 2010, the United States Department of Labor (the “DOL”) released the Model Employer CHIP Notice (the “Model Notice”). The Model Notice was designed as a national notice to cover situations in which employees of an employer reside in different states. While the Model Notice contains a general description of the premium assistance, it provides only state contact information for state specific assistance information. A copy of the notice is attached and is also available at http://www.dol.gov/ebsa/. The Model Notice can also be tailored to reflect only the state(s) in which that employer maintains group health plans.

 
 When You Need To Provide Notice?
The notice must be sent to employees the later of (i) the first day of the first plan year after February 4, 2010 (date the DOL issued the Model Notice), i.e. January 1, 2011; or (ii) May 1, 2010.  
  • If a plan year begins between February 4, 2010 and April 30, 2010, the notice must be sent by May 1, 2010. 
  • For plans that begin on or after May 1, 2010, the Employer CHIP notice must be provided by the first day of the next plan year (January 1, 2011 for calendar year plans). 
  • Thereafter, notices are to be sent out annually. 

The DOL will update the information on its website as needed on an annual basis.

 
 How Do You Provide the Notice?      
  • The notice can be given to employees together with group health plan’s eligibility and enrollment information, open enrollment packets, or summary plan descriptions so long as the notice appears separately and in a way that will ensure that employees will appreciate the notice’s significance. 
  • The notice can be sent electronically if it meets with the electronic disclosure safe harbor provision of 29 C.F.R. § 2520104b-1(c) or via first class mail.
 

            For further information on the CHIPRA Notice requirements, please contact Neil Talegaonkar at            ntalegaonkar@t-mlaw.com or 804 649-7545.