CHIP Language Effective April 1, 2009

[CTipper]

When I first saw this language I thought we were going to have to amend the Plan documents to reflect this change.

Now that I've reread it many times, I've changed my mind. I'm wondering if my take on this is the same as everybody else's?

1. This is not optional. The Plan Sponsors must operate and administer their Plans according to this rule effective April 1, 2009.

2. The length of time the Participant has to inform the Plan Sponsor of the change is not a variable. In other words the Plan Sponsor can't pick 40 days or 70 days. The rule states 60 days. Correct?

Thanks in advance

Christopher

[GMK]

I agree that CHIP is not optional, it is in effect as of April 1, 2009, and 60 days means only 60 days.

Health and cafeteria plan documents may need to be amended and contracts with insurers may need to be updated if they would otherwise limit the special enrollment rights.

The 2 new notices, one to the employees and one to the state, will be required after the model notices are published (presumably by Feb. 7, 2010).

[Gudgergirl]

It seems to me that cafeteria plans only need to be amended if the plan document specifically references the 30 day enrollment period for the previous HIPAA special enrollments. If the cafeteria plan merely says that an election change may be made that corresponds with the special enrollment rights provided in Code Section 9801(f), then I don't see any reason for an amendment.

[CTipper]

Anybody know when the SPDs need to be changed to reflect this?

Christopher

[Guest LMPett]

Anybody know when the SPDs need to be changed to reflect this?

Christopher

We're treating the new special enrollment rights under CHIP as a "material modification"....per ERISA, Summary of Material Modifications must be distributed within 210 days from end of plan year. By then, expect insurer to have modified SPD so SMM may not be necessary. Will obviously allow new spec enrollment rights starting 4/1/09.

[Mary C]

We're treating it as a material modification and distributing the info during annual enrollment in June. We are only extending the 60 day notification period to the two specific events listed in the regs and keeping 31 days for all other status change events, both under HIPAA special enrollment and Section 125.