New NOTICE Requirement
The US Department of Labor’s Employee Benefits Security Administration recently published a model Notice for Employers to use regarding certain individuals’ eligibility for premium assistance under Medicaid or the Children’s Health Insurance Program (CHIP). This notice informs employees of potential opportunities for group health plan premium assistance under Medicaid and the Children’s Health Insurance Program.
An Employer is required to provide this Notice to all of its employees (whether they are enrolled in a health plan offered by the Employer or they are not enrolled and regardless of whether the employees are eligible for participation in the Employer’s health insurance program).
The Notice requirement applies to plan years that commence after February 4, 2010. An Employer is required to provide the Notice to its employees no later than the first day of its plan year, except that an Employer whose plan year commences between February 4, 2010 and April 30, 2010 may provide the Notice no later than May 1, 2010.
The Notice must be provided to employees on an annual basis. The Notice may be furnished along with the Employer’s annual open enrollment materials. However, the Notice must be provided to all employees entitled to receive the Notice. Alternatively, the Notice may be provided in a separate mailing, or it may be provided by e-mail if the criteria of the Department of Labor’s electronic disclosure safe harbor (see 29 CFR 2520.1046-1(b)) are satisfied.
