If you are an employer who offers a group health plan to employees who reside in the following states, then the Department of Labor (DOL) requires you to provide a premium assistance notice to employees who are eligible for the group health plan and who are also eligible (or may become eligible) for Medicaid, including the employees children who are also eligible (or may become eligible) for the Children’s Health Insurance Program (CHIP): 

 

 

The purpose of the notice is to inform employees that the Medicaid/CHIP program in their state may help pay for coverage offered by the employer. Since the notice must be provided to employees and/or their children who may become eligible for Medicaid/CHIP, the notice should be provided to any employee who lives in one of the states mentioned above and who is eligible for the group health plan.    

 

The DOL has a model notice which employers can distribute to applicable employees. It was updated as of July 31, 2016. There is also a Spanish version available. Failure to provide the notice may result in penalties of $110 per day, per employee. 

 

Here are some action items for employers: