When it comes to your employees making changes to their group health insurance plans or if for some reason the policy needs to be terminated, there are a few things you should know.
As many states have updated legislation guidelines, we are no longer allowed exceptions for enrollments and terminations to be processed retroactively.
It is imperative that group administrators audit their monthly invoices, as employers are liable for members’ premium payments if terminations have not been requested in a timely manner. Employers are liable from the time the insured or enrollee ceases to be eligible for coverage until the end of the contract month in which the carrier is notified that the insured or enrollee is no longer part of the group health insurance plan and no longer eligible for coverage.
For new hires and qualified life events, most policies allow 30 days for enrollment to be processed retroactively. While employees are generally only allowed to change group health insurance benefit elections during the open enrollment period each year, certain life events provide an exception. Those life events allow employees to change benefits elections in the middle of the plan year if certain requirements are met. The following are examples of types of life events that may allow an employee to change benefit elections during a plan year:
· Birth/Adoption
· Change in Insurance Coverage
· Change in Employment Status (full time/part time)
· Death in the Family
· Dependent Child Reaches Limiting Age
· Divorce/Annulment
· Legal Separation
· Marriage
· Spouse Loss of Other Coverage
Notify your benefits team immediately if an employee experiences any employment or life event changes so that they can ensure there is no interruption or error in benefits or billing.
At Indigo Partners, we offer a wide variety of award-winning employee benefits. Our experience and expertise ensures that your company is matched with the best group health insurance plan for you and your employees. By offering several different national network options including medical insurance, dental insurance, vision insurance, life insurance and disability insurance, we make sure you are matched with the best, most affordable insurance benefits package available so your company can grow and succeed. Contact us today to get a quote on a group health insurance plan that fits your business needs!
Posted in Health Insurance
