This is my final installment on The Headache of Enrolling an Employee Late. 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.
Administration Liabilities
If the insurance company does agree to cover the employee, or make the change, the headache may not end there. Most group policies have limitations imposed that will see dental amounts limited in the first year, usually to $250.
Unlike healthcare, where the health history is being investigated and health questionnaries have been requested, this dental restriction exists because there is less likelihood of the insurance carrier having a clear picture of person’s dental health, or uncertainty in risk for claims in the near future. After the first year, however, the late applicant’s annual maximum dental benefits are restored to the full amount. For good measure, while the restriction is being applied, full dental premiums are required.
So to avoid the pitfalls of
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.