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|What are the benefits of becoming a HIP Link employer?|
|How does an employer become a HIP Link employer?|
|What information is needed to complete the HIP Link employer application?|
|Are there any fees associated with becoming a HIP Link employer?|
|Will employers change how they deduct employees’ premium amounts from payroll?|
|Can employers continue to make contributions to Health Savings Accounts (HSAs)?|
|Can employers offer Health Reimbursement Accounts (HRAs)?|
|Can multi-employer plans or unions apply for HIP Link?|
|How will employers know if an employee is eligible for HIP Link?|
|Once an employer plan is approved for HIP Link, what are the responsibilities for the employer?|
|How long will the employer have to enroll the employee in coverage and for it to become active?|
|Will the employer be required to make HIP Link coverage effective on the first of the month?|
|How do open enrollment periods impact HIP Link?|
|What happens if a HIP Link eligible employee selects a plan that does not qualify for HIP Link?|
|How do I tell my employees about the program?|
What are the benefits of becoming a HIP Link employer
HIP Link employers may be able to enroll more of their employees into their employer-sponsored insurance. This may help some employers meet health plan participation requirements. Small employers using the Health Insurance Marketplace may receive tax benefits. In addition, registering as a HIP Link employer and offering another benefit option for low income employees may help improve employee retention and satisfaction.
How does an employer become a HIP Link employer?
To become a HIP Link employer, you must employ Indiana residents, contribute at least 50 percent to the premium cost and complete an online application. This application is available at the HIP Link employer portal at http://in.gov/fssa/hip/2490.htm. After review and approval, the employer will receive a HIP Link Employer ID. Eligible employees may then enroll in the program.
What information is needed to complete the HIP Link employer application?
The employer will need to provide general business information, such as federal employer identification number (FEIN), primary contact and business address. Additionally, health insurance plan information is needed, such as benefit summaries and premium rates for the employees.
Are there any fees associated with becoming a HIP Link employer?
No, there are no costs. Registering as a HIP Link employer does not have any associated fees.
Will employers change how they deduct employees’ premium amounts from payroll?
No. There will be no changes to how employers deduct premium amounts from payroll.
Can employers continue to make contributions to Health Savings Accounts (HSAs)?
HIP Link provides supplement coverage for out-of-pocket expenses. Employees are only eligible for tax exempt contributions to an HSA when their high-deductible plan is their only source of coverage. To prevent employees from facing tax penalties or other consequences, employers cannot make contributions for HIP Link eligible employees.
Can employers offer Health Reimbursement Accounts (HRAs)?
HRAs can be administered the same for all employees as currently operated if offered by the employer. Employers can continue to make contributions to HRAs.
Can multi-employer plans or unions apply for HIP Link?
Yes, unions can apply for HIP Link through the employer application.
How will employers know if an employee is eligible for HIP Link?
All HIP Link employers will communicate employee information using the online employer portal. The employer will receive an email when one of their employees is applying for HIP Link. The employer will need to verify employee data.
Once an employer plan is approved for HIP Link, what are the responsibilities for the employer?
Once enrolled as a HIP Link employer, employers will need to confirm new HIP Link eligible employees’ eligibility for the program and communicate any relevant changes, such as a HIP Link employee resignation or change in business address. On a monthly basis, the HIP Link employer will be prompted to confirm through the employer portal that employees enrolled in HIP Link are still employed and eligible for health insurance coverage. This confirmation will include the amount of the premium deducted from the employee’s paycheck to ensure that the employee is reimbursed the appropriate amount from the state.
How long will the employer have to enroll the employee in coverage and for it to become active?
Becoming eligible for HIP Link is considered a qualifying event for the purposes of making plan changes. Therefore, employees can enroll in HIP Link during a special enrollment period. The special enrollment period is the same timeframe currently allowed by the employer to make the new election or coverage change which is generally 30 days. The coverage is active based on the coverage effective date as provided by the employer.
New employees may be subject to a waiting period. HIP Link coverage would begin for eligible employees after that period. The employer will be asked to provide their waiting period in the employer application, if applicable. The employee may opt to apply for the Healthy Indiana Plan in the meantime and, if eligible, could transition to HIP Link coverage at the end of the waiting period.
Will the employer be required to make HIP Link coverage effective on the first of the month?
No. The coverage start date is determined by the employer. The employer will be asked to provide the coverage effective date and end date in the employer portal for each of their eligible HIP Link employees. Employees enrolling during a special enrollment period due to becoming eligible for HIP Link will have a coverage effective date as determined by the employer Employees who are eligible for HIP coverage but who are waiting for the coverage start date for their employer-sponsored insurance will be enrolled in HIP in the meantime.
How do open enrollment periods impact HIP Link?
HIP Link requires an annual eligibility verification to ensure employees continue to meet eligibility requirements. After the initial enrollment, the HIP Link eligibility verification will align with the employer’s open enrollment period and coverage start date. HIP Link benefits begin when the employer provides the coverage effective date in the employer portal. Eligibility for HIP Link is a qualifying event in which employees may enroll in the program during a special enrollment period.
What happens if a HIP Link eligible employee selects a plan that does not qualify for HIP Link?
The employer will be notified which group health plan(s) are HIP Link eligible plans upon approval of their employer application. To get the HIP Link premium support, eligible employees must enroll in a HIP Link eligible plan. If a HIP Link eligible employee elects a plan other than the HIP Link plan, the employee will not receive the premium assistance or funds to cover out-of-pocket expenses. Employers will be able to notify HIP Link eligible employees of what plans are HIP Link eligible.
How do I tell my employees about the program?
HIP Link information can be found at www.HIP.IN.gov by contacting 1-877-GET-HIP-9 or HIP2.0@FSSA.IN.gov. Additionally, employers will be provided information packets with material to distribute to employees.