Taking a chance may cost you more than premiums.
It’s a problem of communication. Too many times employees fail to disclose relevant information relating to their employee benefit coverage, sometimes with the misconception of saving premium, or considering the information “nobody else’s business”.
Is this a result of not being well informed from the on-set? Understanding the ramifications? Appreciating what they have available should the need arise? Likely all.
Full disclosure in a timely manner matters.
Employers and plan administrators alike should constantly remind employees to report changes for their own advantage typically within 31-days of the change.
· This will avoid duplicate coverage and allow for coordination of benefits where and when applicable.
· Ensure the coverage as expected will be there when a risk situation, such as death, disability, burden of high pharmacy claim, or medical experience arises.
· Changes in personal situations, such as a spouse, children, marital status can and will impact insurance needs and coverage expectations.
· Failure to report may result can lead to gaps when needed most.
Reporting changes are not relegated to just personal situations.
· New hires
· Salary increases
· Hourly changes
· Eligibility status
Failing to address these changes within 31-days may result in:
· Incorrect benefits, limited access, or no coverage granted—a decline.
· Mistakes in billing.
· Creating unnecessary complications or issues down the line.
Some of the common overlooked changes include:
· Name change
· Family merging
· Death of dependent
· Beneficiary update
· Correcting dependent dates of birth
· Student update
· Spousal coverage access, loss or gaining of additional coverage
· Forgetting to update both spousal plans, not just one plan and assuming the other plan will automatically be updated. (insurance/benefit providers do not share private information even when both spouses work for the same employer)
There’s “power” in conversation. Let’s explore the possibilities together. I am here to help.
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Disclaimer: Please note that the information provided, while authoritative, is not guaranteed for accuracy and legality. The site is read by a world-wide audience and employment, taxation, legal vary accordingly. Please seek legal, accounting and human resources counsel from qualified professionals to make certain your legal/accounting/compliance interpretation and decisions are correct for your location. This information is for guidance, ideas, and assistance.