Tuesday, March 31, 2009

Tip of the Day: Reminder that new CHIP requirements become effective tomorrow

President Obama in February signed the Children’s Health Insurance Program Reauthorization Act of 2009 (CHIP), extending the federal program to provide health insurance to low-income children and carrying new implications for group health plans, which by the by, become effective tomorrow, April 1.

First, the law authorizes states to subsidize some or all of the costs for employer-sponsored coverage to CHIP-eligible children, if the child's parent elects to receive it. States may give the subsidy directly to employers -- although employers may opt out of such payments -- or as a reimbursement to workers.

Second, employers must allow mid-year enrollment for parents whose children:
* Have lost their CHIP eligibility or and request employer coverage within 60 days of losing CHIP coverage.
* Become eligible for premium assistance under CHIP or Medicaid.

Those are the facts as I see 'em. But I don't profess to be an attorney, so check with your own legal eagles and/or read this alert from Pillsbury Winthrop Shaw Pittman.

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