20 May 2014

Kaiser Changing Policy on Employee Terminations Effective August 1

20 May 2014

8/3/2014 update – More details from Kaiser:

Kaiser Permanente’s subscriber termination policy will be enforced effective August 1, 2014. Small groups can no longer retroactively terminate subscribers or dependents prior to the month we receive the request. As a result, all subscriber terminations will be effective in the month we receive the request unless a future termination date is requested.

For example, if you request to terminate a subscriber’s coverage beginning August 1, we must receive the request no later than August 31. A termination request received in August cannot be made effective retroactively to July 1 or June 1.

You can still add subscribers or dependents and have the coverage effective retroactively up to two months prior to the current month. For example, you have until August 31 to add members with a coverage effective date of June 1.

To learn more about what the policy means for your business, take a look our Q&A on retroactive subscriber termination or consult the Small Group Administrative Handbook. And you can always use online services to quickly and securely manage your group’s enrollments, terminations, and more.

Please feel free to contact Allpointe with any questions.

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Beginning in August, it is more critical than ever that employers promptly report employees who are no longer eligible for health benefits.  Please use Allpointe’s secure web form to report terminations within 14 days of an employee’s last day at work (or otherwise becoming ineligible for coverage – example: dropping to part-time hours).  This is not unique to Kaiser — we expect that all other carriers will follow suit and tighten up their practice on retroactive terminations.

From Kaiser’s Policy Updates:

Subscriber terminations — Effective August 1, 2014, all subscriber terminations will be effective in the month that we receive the termination request, unless you request that the termination be effective in a future month. We will no longer retroactively terminate subscribers prior to the month we receive the request to terminate. For example, if you want the subscriber’s coverage to be terminated beginning August 1, we must receive the request to terminate no later than August 31. A termination request received in August cannot be made effective retroactively back to July 1 or June 1.

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