I wanted to remind everyone how important it is to ensure that employees are added to the Employee Benefit Program within 30 days of the end of the Waiting Period. The below is an article out of “Smallbiz Advisor“:
The Headache of Late Applicants
BY Joe Demelo, TRG Benefits Group | February 26, 2013
Does it really matter when benefits plan forms are completed and sent to the insurance company?
The short answer is yes—and not just to make life difficult for clients and employees.
A number of basic underlying principles make group plans a convenient way in which to insure employees generally with very little health information being asked. To make this happen, a number of assumptions are made and procedures must be followed to avoid employees from selecting against the insurer (anti-selection).
Read: Benefits governance: The importance of full enrollment
Some of these common principles in group contracts include employees being actively at work and employees and their dependents enrolling in the group benefits program within 31 days of their becoming eligible.
This not only applies when an employee joins the plan, but if there is a lifestyle change such a marriage, reaching common law status, or adding dependent children to the plan.
Avoid the pitfalls late applicants, timing matters and being aware will help mitigate potential issues even the possibility of declined coverage.
Contact us to review your Waiting Period and the processes you use to ensure employees are added in a timely manner.