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graph (10)(E) of such section or other au-
thority.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) AMENDMENTS TO EMPLOYEE RETIREMENT 
INCOME SECURITY ACT.— 
(A) IN GENERAL.—Section 701(f) of the 
Employee Retirement Income Security Act of 
1974 (29 U.S.C. 1181(f)) is amended by adding 
at the end the following new paragraph: 
‘‘(3) SPECIAL RULES FOR APPLICATION IN CASE 
OF MEDICAID AND CHIP.— 
‘‘(A) IN GENERAL.—A group health plan, 
and a health insurance issuer offering group 
health insurance coverage in connection with a 
group health plan, shall permit an employee 
who is eligible, but not enrolled, for coverage 
under the terms of the plan (or a dependent of 
such an employee if the dependent is eligible, 
but not enrolled, for coverage under such 
terms) to enroll for coverage under the terms of 
the plan if either of the following conditions is 
met: 
‘‘(i) TERMINATION OF MEDICAID OR 
CHIP
COVERAGE.—The employee or de-
pendent is covered under a Medicaid plan 
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HR 3963 PCS 
under title XIX of the Social Security Act 
or under a State child health plan under 
title XXI of such Act and coverage of the 
employee or dependent under such a plan 
is terminated as a result of loss of eligi-
bility for such coverage and the employee 
requests coverage under the group health 
plan (or health insurance coverage) not 
later than 60 days after the date of termi-
nation of such coverage. 
‘‘(ii) ELIGIBILITY FOR EMPLOYMENT 
ASSISTANCE UNDER MEDICAID OR CHIP.— 
The employee or dependent becomes eligi-
ble for assistance, with respect to coverage 
under the group health plan or health in-
surance coverage, under such Medicaid 
plan or State child health plan (including 
under any waiver or demonstration project 
conducted under or in relation to such a 
plan), if the employee requests coverage 
under the group health plan or health in-
surance coverage not later than 60 days 
after the date the employee or dependent is 
determined to be eligible for such assist-
ance. 
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HR 3963 PCS 
‘‘(B) COORDINATION WITH MEDICAID AND 
CHIP.— 
‘‘(i) OUTREACH TO EMPLOYEES RE-
GARDING AVAILABILITY OF MEDICAID AND 
CHIP COVERAGE.— 
‘‘(I) IN
GENERAL.—Each em-
ployer that maintains a group health 
plan in a State that provides medical 
assistance under a State Medicaid 
plan under title XIX of the Social Se-
curity Act, or child health assistance 
under a State child health plan under 
title XXI of such Act, in the form of 
premium assistance for the purchase 
of coverage under a group health 
plan, shall provide to each employee a 
written notice informing the employee 
of potential opportunities then cur-
rently available in the State in which 
the employee resides for premium as-
sistance under such plans for health 
coverage of the employee or the em-
ployee’s dependents. 
‘‘(II) MODEL NOTICE.—Not later 
than 1 year after the date of enact-
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ment of the Children’s Health Insur-
ance Program Reauthorization Act of 
2007, the Secretary and the Secretary 
of Health and Human Services, in 
consultation with Directors of State 
Medicaid agencies under title XIX of 
the Social Security Act and Directors 
of State CHIP agencies under title 
XXI of such Act, shall jointly develop 
national and State-specific model no-
tices for purposes of subparagraph 
(A). The Secretary shall provide em-
ployers with such model notices so as 
to enable employers to timely comply 
with the requirements of subpara-
graph (A). Such model notices shall 
include information regarding how an 
employee may contact the State in 
which the employee resides for addi-
tional information regarding potential 
opportunities for such premium assist-
ance, including how to apply for such 
assistance. 
‘‘(III) OPTION TO PROVIDE CON-
CURRENT WITH PROVISION OF PLAN 
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MATERIALS
TO
EMPLOYEE.—An em-
ployer may provide the model notice 
applicable to the State in which an 
employee resides concurrent with the 
furnishing of materials notifying the 
employee of health plan eligibility, 
concurrent with materials provided to 
the employee in connection with an 
open season or election process con-
ducted under the plan, or concurrent 
with the furnishing of the summary 
plan description as provided in section 
104(b). 
‘‘(ii) 
DISCLOSURE
ABOUT
GROUP 
HEALTH PLAN BENEFITS TO STATES FOR 
MEDICAID
AND
CHIP
ELIGIBLE
INDIVID-
UALS.—In the case of a participant or ben-
eficiary of a group health plan who is cov-
ered under a Medicaid plan of a State 
under title XIX of the Social Security Act 
or under a State child health plan under 
title XXI of such Act, the plan adminis-
trator of the group health plan shall dis-
close to the State, upon request, informa-
tion about the benefits available under the 
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group health plan in sufficient specificity, 
as determined under regulations of the 
Secretary of Health and Human Services 
in consultation with the Secretary that re-
quire use of the model coverage coordina-
tion disclosure form developed under sec-
tion 311(b)(1)(C) of the Children’s Health 
Insurance Program Reauthorization Act of 
2007, so as to permit the State to make a 
determination (under paragraph (2)(B), 
(3), or (10) of section 2105(c) of the So-
cial Security Act or otherwise) concerning 
the cost-effectiveness of the State pro-
viding medical or child health assistance 
through premium assistance for the pur-
chase of coverage under such group health 
plan and in order for the State to provide 
supplemental benefits required under para-
graph (10)(E) of such section or other au-
thority.’’. 
(B) CONFORMING
AMENDMENT.—Section 
102(b) of the Employee Retirement Income Se-
curity Act of 1974 (29 U.S.C. 1022(b)) is 
amended— 
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ordination disclosure form described 
in subclause (II) and to identify the 
impediments to the effective coordina-
tion of coverage available to families 
that include employees of employers 
that maintain group health plans and 
members who are eligible for medical 
assistance under title XIX of the So-
cial Security Act or child health as-
sistance or other health benefits cov-
erage under title XXI of such Act. 
(II) MODEL COVERAGE COORDI-
NATION
DISCLOSURE
FORM
DE-
SCRIBED.—The model form described 
in this subclause is a form for plan 
administrators of group health plans 
to complete for purposes of permitting 
a State to determine the availability 
and cost-effectiveness of the coverage 
available under such plans to employ-
ees who have family members who are 
eligible for premium assistance offered 
under a State plan under title XIX or 
XXI of such Act and to allow for co-
ordination of coverage for enrollees of 
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such plans. Such form shall provide 
the following information in addition 
to such other information as the 
Working Group determines appro-
priate: 
(aa) 
A 
determination 
of 
whether the employee is eligible 
for coverage under the group 
health plan. 
(bb) The name and contract 
information of the plan adminis-
trator of the group health plan. 
(cc) The benefits offered 
under the plan. 
(dd) The premiums and 
cost-sharing required under the 
plan. 
(ee) Any other information 
relevant to coverage under the 
plan. 
(ii) 
MEMBERSHIP.—The 
Working 
Group shall consist of not more than 30 
members and shall be composed of rep-
resentatives of— 
(I) the Department of Labor; 
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(II) the Department of Health 
and Human Services; 
(III) State directors of the Med-
icaid program under title XIX of the 
Social Security Act; 
(IV) State directors of the State 
Children’s Health Insurance Program 
under title XXI of the Social Security 
Act; 
(V) employers, including owners 
of small businesses and their trade or 
industry representatives and certified 
human resource and payroll profes-
sionals; 
(VI) plan administrators and 
plan sponsors of group health plans 
(as defined in section 607(1) of the 
Employee Retirement Income Security 
Act of 1974); 
(VII) health insurance issuers; 
and 
(VIII) children and other bene-
ficiaries of medical assistance under 
title XIX of the Social Security Act or 
child health assistance or other health 
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benefits coverage under title XXI of 
such Act. 
(iii) COMPENSATION.—The members 
of the Working Group shall serve without 
compensation. 
(iv) ADMINISTRATIVE SUPPORT.—The 
Department of Health and Human Serv-
ices and the Department of Labor shall 
jointly provide appropriate administrative 
support to the Working Group, including 
technical assistance. The Working Group 
may use the services and facilities of either 
such Department, with or without reim-
bursement, as jointly determined by such 
Departments. 
(v) REPORT.— 
(I) REPORT BY WORKING GROUP 
TO
THE
SECRETARIES.—Not later 
than 18 months after the date of the 
enactment of this Act, the Working 
Group shall submit to the Secretary of 
Labor and the Secretary of Health 
and Human Services the model form 
described in clause (i)(II) along with a 
report containing recommendations 
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for appropriate measures to address 
the impediments to the effective co-
ordination of coverage between group 
health plans and the State plans 
under titles XIX and XXI of the So-
cial Security Act. 
(II) REPORT BY SECRETARIES TO 
THE
CONGRESS.—Not later than 2 
months after receipt of the report 
pursuant to subclause (I), the Secre-
taries shall jointly submit a report to 
each House of the Congress regarding 
the recommendations contained in the 
report under such subclause. 
(vi) 
TERMINATION.—The 
Working 
Group shall terminate 30 days after the 
date of the issuance of its report under 
clause (v). 
(D) EFFECTIVE DATES.—The Secretary of 
Labor and the Secretary of Health and Human 
Services shall develop the initial model notices 
under section 701(f)(3)(B)(i)(II) of the Em-
ployee Retirement Income Security Act of 1974, 
and the Secretary of Labor shall provide such 
notices to employers, not later than the date 
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that is 1 year after the date of enactment of 
this Act, and each employer shall provide the 
initial annual notices to such employer’s em-
ployees beginning with the first plan year that 
begins after the date on which such initial 
model notices are first issued. The model cov-
erage coordination disclosure form developed 
under subparagraph (C) shall apply with re-
spect to requests made by States beginning 
with the first plan year that begins after the 
date on which such model coverage coordination 
disclosure form is first issued. 
(E) ENFORCEMENT.—Section 502 of the 
Employee Retirement Income Security Act of 
1974 (29 U.S.C. 1132) is amended— 
(i) in subsection (a)(6), by striking 
‘‘or (8)’’ and inserting ‘‘(8), or (9)’’; and 
(ii) in subsection (c), by redesignating 
paragraph (9) as paragraph (10), and by 
inserting after paragraph (8) the following: 
‘‘(9)(A) The Secretary may assess a civil penalty 
against any employer of up to $100 a day from the date 
of the employer’s failure to meet the notice requirement 
of section 701(f)(3)(B)(i)(I). For purposes of this sub-
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