2024 Pay or Play Affordability Percentage

New Model Employer CHIP Notice

A new model Employer Chip Notice with information from January 21, 2022, was just released by the Department of Labor (DOL). The model notice is updated each year to reflect changes in states offering premium assistance programs, along with the contact information for those states.

The Children’s Health Insurance Program Reauthorization Act of 2009 affects employers who maintain group health plans in states providing premium assistance subsidies under a Medicaid plan or Children’s Health Insurance Plan (CHIP).

The DOL imposes an annual notice requirement on employers. The employer can choose to prepare their own notice or modify the provided model notice. The CHIP notice can be distributed to employees on its own or can be paired with other compliance documents, open enrollment materials, or a summary plan description (SPD).

Regardless of the employer’s location, an employer is subject to provide this notice on an annual basis, provided its group health plan covers participants residing in a state that provides a premium assistance subsidy. It is imperative that employers include at least the minimum relevant state contact information for an employee residing in a state with premium assistance.

If you have any questions, please contact your dedicated Creative Benefits, Inc. team member.