220-8  Termination of Health Insurance Coverage

Effective: June 1, 2012

Previous Policy

1. Voluntary Termination of Health Insurance Coverage - 90 Day Ineligibility Period

A child is not eligible for CHIP enrollment if he or she, or the custodial parent or guardian has:

1. Voluntarily terminated coverage of any health insurance plan for the child within 90 days before applying for CHIP; OR

2. Voluntarily changed a child's comprehensive health insurance plan to a limited health plan within 90 days before applying for CHIP.

The child may be eligible beginning the 91st day after the date the prior insurance coverage ended. 

2. Exceptions to 90 day ineligibility period:

1. Voluntary termination of COBRA coverage.

2. Voluntary termination of HIPUtah (Health Insurance Pool) coverage.

3. Voluntary termination of coverage by a non-custodial parent.

4. Voluntary termination of UPP reimbursed, employer-sponsored coverage.

5. Voluntary termination of insurance that does not provide coverage in Utah.

6. Voluntary termination of a limited health insurance plan.  (See section 220-3.)

7. ORS forces enrollment under NMSN (National Medical Support Notice). Then, because the cost of insurance exceeds 5% of the gross monthly income, ORS reverses the forced enrollment and the child is terminated from the TPL of the custodial parent.  

3. Involuntary Termination of Coverage:

An applicant who is involuntarily terminated from a group health plan may be eligible for CHIP enrollment at application.  The 90 day ineligibility period does not apply. 

• For example, the employer terminates the group health plan for all of its employees.