Employee Matters

Health Insurance Termination Notices
What is a Notice of Health Insurance Termination?

Employee Compensation and Benefits Services (EC&BS) 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 also is provided to the employee’s department or division.

Why would an employee receive this notice and 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:

A retiring employee will receive this notice. They do not need to do anything. EC&BS 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. Graduate assistants and employees covered by WRS 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 or division has notified EC&BS of this fact. Employees who receive 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 in a timely fashion 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. Employees who receive 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 EC&BS receives a request for reinstatement, it checks eligibility for reinstatement and immediately notifies the employee’s health insurance carrier and ETF. Coverage is reinstated without a lapse.

What rights do employees have regarding health insurance when they terminate employment?
Under federal law (COBRA), employees are eligible to continue health insurance coverage in the group plan with the same benefits for 36 months. Contact your payroll and benefit office or EC&BS for COBRA information.

Questions?
For more information, visit the EC&BS Web site, or e-mail employee@bussvc.wisc.edu.