(a) Purpose. The Medicaid Health Insurance Premium Payment (HIPP) program is established under §1906 of the Social Security Act (42 U.S.C. §1396e) to reimburse an eligible individual's portion of employer-sponsored health insurance premium payments, when cost-effective.(b) Definitions. The following words and terms, when used in this section, have the following meanings unless the context clearly indicates otherwise:(1) Cost-effective--In accordance with §1906 of the Social Security Act (42 U.S.C. §1396e(e)(2)), the amount paid for premiums, coinsurance, deductibles, other cost sharing obligations under a group health plan, and additional administrative costs is less than the amount paid for an equivalent set of Medicaid services.(2) Employer-sponsored insurance (ESI)--A group health plan offered to an employee through the employer.(3) Explanation of Benefits (EOB)--A document provided by the insurance company that shows the type of medical service, the date of service, the amount paid by the insurance company, and the amount paid by the individual receiving medical services.(4) Family member--Any member of a family for which the employer-sponsored insurance plan will allow coverage, such as a spouse or child.(5) Group health plan--In accordance with