The Children’s Health Insurance Program Reauthorization Act of 2009 (CHIPRA), signed in February, reauthorizes the CHIP program through Fiscal Year 2013. It will affect employer group plans by giving CHIP and Medicaid-eligible dependents special enrollment rights and expanding employers’ notice requirements.
Beginning April 1, CHIPRA requires group health plans to allow eligible employees and/ or dependents to enroll for coverage if (1) they lost eligibility for Medicaid or CHIP coverage and request coverage under the group health plan within 60 days after such termination; or (2) they become eligible for Medicaid or CHIP assistance and request coverage within 60 days after the eligibility determination date.
CHIPRA allows states to subsidize premiums for CHIP or Medicaid-eligible children enrolled in their parent’s employer group plan. The child or parent must elect to receive the subsidy. Employers can opt out of receiving subsidies directly, in which event the state shall pay the employee.
Employers must provide employees notice of their enrollment rights after the Departments of Labor and Health and Human Services develop a model notice. The Act imposes a deadline of Feb. 4, 2010 for the creation of this notice.