On February 4, 2009, the President signed the Children’s Health Insurance Program Reauthorization Act of 2009 (“CHIPRA”).  CHIPRA extends and expands the State Children’s Health Insurance Program (“CHIP”).  CHIP is a federal-state program designed to reduce the number of low income children without health coverage.  This new law permits states to subsidize premiums for employer sponsored group health coverage for eligible children and families. 

            CHIPRA requires most Employers in New York to provide notice to their employees of potential opportunities currently available in New York for group health plan premium assistance under Medicaid and the Children’s Health Insurance Program (CHIP).

            Any New York Employer who provides benefits (directly or through insurance, reimbursement, or otherwise) for medical care for its employees, and contributes at least 40% towards their health insurance premiums, must provide the CHIPRA Notice.

            The notices must inform each employee of the possible state premium subsidy assistance program regardless of the employee’s current enrollment status.  Employers are required to provide notice of this opportunity by the first day of the plan year after Feb. 4, 2010 or May 1, 2010 (whichever is later).  For example, if an Employer’s plan year begins on January 1^st of each year, the notice would need to be provided by January 1, 2011.  Each year, another copy of the notice must be provided to the employee.  The model notices can be accessed at http://www.dol.gov/ebsa/.

            There are civil penalties up to $100 a day for failure to comply with the new notice and disclosure requirements.

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