The Department of Labor (“DOL”) has released a revised and updated model notice that employers can use to inform employees of the potential for state premium assistance subsidies for the purchase of group health coverage.
The Children’s Health Insurance Program (“CHIP”) Reauthorization Act of 2009 requires employers who maintain group health plans to provide an annual notification of the opportunity for premium assistance subsidies from state Medicaid or CHIP programs. The notice must be provided to all employees who reside in states that provide such assistance, regardless of whether the employees are currently group health plan participants.
Because the model notice lists the states that provide premium assistance, the DOL has said that an employer can meet its obligation by simply providing the notice to all employees, regardless of where they live.
The maximum penalty for failure to provide the notice is, for 2019, $117 per day per employee.
The revised DOL model notice may be found by clicking here.