The Department of Labor (DOL) has updated the Model Employer Children’s Health Insurance Plan (CHIP) Notice as of Jan 31, 2026.
Who this applies to:
All size employers sponsoring any type of medical plan in which employees pay part of the premium, with employees living in a state with a Medicaid and/or CHIP premium assistance subsidy.
Key details:
An employer must provide the Employer CHIP Notice to employees eligible for the employer’s medical plan who reside in a state with a premium assistance subsidy, regardless of the employer’s location.
A model notice is available in English and Spanish. The notice is updated at the end of January and July each year reflecting when states make changes to phone, email, and website information.
For the January 2026 update, Louisiana made changes to its website, email, phone, fax, and mailing address.
Employers sponsoring a group health plan should provide the CHIP notice with other health plan eligibility materials, such as new hire and annual open enrollment materials.
Penalties for non-compliance:
Employers who fail to provide the Employer CHIP Notice to employees in premium assistance states may face a penalty of up to $145 per person per day. The Model Employer CHIP Notice is considered a safe harbor way to meet the notice language requirements. While the employer is permitted to remove from the notice any states in which employees do not reside, keep in mind that if they eventually hire anyone in such a state, they need to add that state back to the notice.
Impact to employers:
While the model notice usually includes an expiration date that goes fairly far into the future, the intent of the notice is to ensure employees understand how to reach out to a state to inquire about and apply for premium assistance. To that end, it is strongly recommended employers always grab the latest updated version of the model notice to incorporate into plan materials for new hires and for open enrollment.
Compliance update brought to you by Benefit Compliance Solutions (BCS) in partnership with Nava Benefits. The information contained in this update, including any attachments, is presented solely in the capacity of Nava as compliance consultants. Nothing contained herein should be construed as tax or legal advice or opinion or used as a substitute for consultation with professional legal counsel. Nava is not authorized to practice law, is not an attorney or law firm, and is not rendering legal advice. Communications with Nava are not subject to attorney-client privilege.