The Children's Health Insurance Program Reauthorization Act of 2009

The Act amends the Internal Revenue Code (the "Code"), the Employee Retirement Income Security Act of 1974 (ERISA), and the Public Health Service Act (PHSA) to include a new special enrollment right for employees and dependents who lose coverage under a Medicaid or a State Children's Health Insurance Program under titles XIX and XXI of the Social Security Act, (referred to respectively as "Medicaid Plan" and "State Plan"). The Act became law on February 4, 2009.

Changes Effective April 1, 2009 Under the Act:
New 60 Day Special Enrollment Rights

The Act creates two new Special Enrollment rights for eligible but unenrolled employees and dependent children who either: (1) lose coverage under a Medicaid Plan or State Plan (2) become eligible for group health plan premium assistance under a Medicaid Plan or State Plan.

Unlike the current 30 day time-frame for employees to request enrollment upon an existing HIPAA special enrollment event, the Act gives such employees 60 days to request enrollment in the group health plan. Under the Act, an employee may request enrollment in the group health plan within 60 days of the date coverage terminates under the Medicaid Plan or State Plan, or within 60 days after the employee or dependent is determined to be eligible for state premium assistance.

These special enrollment rights require a Summary of Material Modification (SMM) for your Cafeteria Plan documents. Please view this attached sample "SMM" DPAS is providing you our clients to comply with this special enrollment.

If you have any questions, please contact cstout@idpas.com

Thank you,
DPAS