Frequently Asked Questions (FAQs)
On Feb. 4, 2009, President Obama signed the Children's Health Insurance Reauthorization Act (CHIPRA) of 2009 into law. This legislation re-established and expanded health care coverage for uninsured children. Several components of the legislation went into effect on April 1, 2009, and additional employer requirements are taking effect this year.
Employers must notify individuals of their CHIPRA enrollment rights if the state in which the individual resides provides premium assistance.
The Department of Labor's Employee Benefits Security Administration (EBSA) indicates that more than 40 states have some form of a premium assistance program. However, employers should investigate each state's premium assistance programs carefully and use the EBSA model notice as a draft to develop their own final version of the notice.
For example the EBSA indicates that Kansas has a premium assistance program, but Kansas does NOT currently have a premium assistance program.
Employers are required to provide notices by the later of: (1) the first day of the first plan year after Feb. 4, 2010; or (2) May 1, 2010. The EBSA notice indicates that the following implementation dates are applicable to employers with respect to the notice:
- For plan years beginning between Feb. 4, 2010, through April 30, 2010, the notice must be provided by May 1, 2010.
- For plan years beginning on or after May 1, 2010, the notice must be provided by the first day of the next plan year (January 1, 2011 for calendar year plans).
Attached is the link to the EBSA model notice. Please remember that this is a model. It should be modified to provide accurate information to your employees.
For full details regarding employer responsibilities under CHIPRA, please contact your legal counsel or visit the Department of Labor's website at: http://www.dol.gov/ebsa/.
Please note: This information concerning CHIPRA subsidies is provided for your information only. It is presented with the understanding that Blue Cross and Blue Shield of Kansas is not engaged in rendering legal or tax advice. If tax or other professional assistance is required, utilize the services of a CPA, attorney, accountant or other consultant as may be required.
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