Health Insurance Termination Notices
What is a "Notice of Health Insurance Termination"?
The Office of Human Resources (OHR) developed a service approximately four years ago to notify employees when their health insurance is reported to their health insurance carrier as terminating. Many employees did NOT know the date their health insurance was terminating.
Who receives this notice?
A notice is sent to an employee's home address when health insurance is being reported to their health carrier as terminating. A list of employees who are notified is also provided to the employee's department/division.
Why would an employee receive this notice? What action is required?
There are several reasons why an employee receives this notice, and depending upon the reason for the notice, determines what the employee should do:
- An employee retiring will receive this notice. They do NOT need to do anything. OHR coordinates their health insurance coverage with Employee Trust Funds (ETF).
- An employee changing from a position covered by retirement (WRS) to a Graduate Assistant position that is not covered by WRS OR an employee changing from a Graduate Assistant position to a position covered by WRS will receive a notice. Employees covered by WRS and Graduate Assistants have separate health insurance plan groups. An employee receiving the notice due to a change in positions must file a new health insurance application if eligible for coverage in the new position.
- An employee who is temporarily off the payroll when health insurance deductions are taken will receive a notice unless their department/division has notified OHR of this fact. An employee who receives a notice due to this reason should immediately contact their department payroll and benefits office to request reinstatement.
- An employee on a leave of absence who does not prepay premiums timely will receive a notice. Prepayments must be received by the 15th of the month for the following month's payment. For example, a prepayment for May must be received on or before April 15 to ensure that coverage is not terminated. An employee receiving a notice in this situation should immediately notify their department payroll and benefits office to pay the premiums and request reinstatement.
- An employee paid on the End-of-Month (paid on the 12th) will NOT have health insurance deductions taken as no health deductions are taken from this payroll. An employee who receives a notice for this reason should immediately contact their department payroll and benefits office and request reinstatement.
Can health insurance be reinstated or continued?
Yes, when OHR receives a request for reinstatement, they check eligibility for reinstatement and immediately notify the employee's health insurance carrier and ETF of this fact. Coverage is reinstated with no lapse in coverage.
What rights do employees have regarding health insurance when they terminate employment?
Under Federal law, employees are eligible to continue health insurance coverage in the group plan with the same benefits for 36 months through COBRA. Contact your payroll and benefit office or OHR for COBRA information.