MEMORANDUM

DISCUSSION:

The purpose of this memorandum is to introduce CHIP premium changes effective July 1, 2015. Premiums are required for families with income above 150% of the Federal Poverty Level (FPL).  Each year, as required by state statute, the MO HealthNet Division (MHD) establishes the new premium amounts. The new premiums range from a minimum of $14 to a maximum based on family size and gross income, not to exceed 5% of the family's gross income.  A Premium chart with an effective date of July 1, 2015 is attached.

The MHD Premium Collections Unit is including an advance notice of the upcoming change to premiums with invoices mailed July 2015 to all eligible premium group families. Premiums paid in June for July coverage will not change. Premiums invoiced in July for August coverage will reflect the new premiums. Questions concerning premiums should be referred to the Premium Collections Unit at 1-877-888-2811.

Hearings requested as a result of the premium change will be conducted by the MO HealthNet Division using normal hearing procedures. Hearings requested as a result of a change in income or household composition that affect the premium will be conducted by the Family Support Division.  Evidence presented at the hearing must include a copy of the invoice from the Premium Collections Unit, a copy of the budget used to arrive at the monthly gross income, and the IM-4(PRM) reflecting the premium amounts based on income.

NOTE: Adverse action notices on MEDES cases will be manually sent by the Information Technology Services Division on June 19, 2015 to inform the participants of the premium increase.

NECESSARY ACTION:

• Review this memorandum with appropriate staff.

ATTACHMENTS:

IM-4 (PRM)

JG/df