Issued by: Centers for Medicare & Medicaid Services (CMS)

Issue Date: September 17, 2014

Program Area: Small Business Health Options Program (SHOP)

Question: In the Federally-facilitated Small Business Health Options Program (FF-SHOP), when employee choice is available and a family picks a new plan when a baby is born, is it possible the newborn could have a different coverage effective date than the family since the newborn's coverage is effective on the birth date?

Answer: No, the FF-SHOP will add the newborn to the existing plan as of the date of the birth and the FF-SHOP will terminate the newborn at the end of the month along with all of the other family members. The coverage effective date for the new plan for the entire family will be the 1st of the month following the birth of the baby.

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