CHIP - Subsidy

[waid10]

The Children's Health Insurance Program Reauthorization Act (CHIPRA) of 2009 took effect on April 1, 2009. The law provides that electing states will provide a premium assistance subsidy to qualifying children. Employers have the ability to opt out of providing this subsidy. If they do so, the subsidy goes directly from the state to the employee, and bypasses the employer.

Does anyone know what the process is for opting out? Also, if we don't opt out, how do we know who qualifies for the subsidy and how much the subsidy is? We are in Virginia. I have read that Virginia is participating in the subsidy piece. However, I have been unable to find Virginia-specific information on the subsidy process (and opt-out process).

Thanks.

[oriecat]

This is just purely anecdotal, but I have had employees in the past who qualified for other chip programs and the state contacted me about their premium reimbursements and I was just able to tell them that I preferred for the premiums to go directly to the employee instead of to me. There wasn't any sort of formal procedure for it. So perhaps it will just continue on that way, and you will get notify when the state is processing an application for an employee.

[waid10]

Does anyone know how the employer opts out of the subsidy (so that the subsidy goes directly to the employee and bypasses the employer)? I can't locate any information on the opt-out process for Virginia. Thanks.

[Guest sniffles]

You probably have to wait until you receive a notification from the VA Dept. of Ins. to opt out.

I've read that most states will not even have the subsidy available until closer to the deadline for the notices - Feb. 4, 2010.

I suggest you contact your Virginia Department of Insurance for an answer to your question.