As of October 1, 2009, a new Connecticut Law (Public Act No. 09-126) allows group employers (CT situs) to elect to terminate coverage under their group health plan and stop paying group premiums for an employee, and his/her dependents, if the employee terminates employment or if the employee is terminated for any other reason but layoff.
WHAT THIS MEANS TO YOU AS AN EMPLOYER?
This law allows the employer to elect to stop paying group premiums for employees and their dependents as of the date of termination if:
- The employee was voluntarily terminated from employment or is terminated for any other reason but layoff, and
- The employer elects to stop payment within 72 hours of the termination by notifying both the carrier and employee.
|
WHAT SHOULD I DO NEXT?
If an employer elects to terminate the employee’s group health insurance coverage upon the termination of employment of an employee (in the situations described above):
The employer has two obligations within 72 hours of termination of employment:
- Notify the health insurer or health care center that it elects to terminate the employee's health insurance, as well as provide the employee's name and other identifying information, date of termination, and whether the employee had dependent coverage, so that the health insurer or health care center can properly process the request.
- Notify the employee of the termination of health insurance coverage.
COBRA coverage and/or State Continuation benefits must still be offered.
The State of Connecticut Insurance Department has provided a FAQ on this new law, please CLICK HERE.
If you have any additional questions regarding the information within this eCommunication, please call Corporate Synergies at 1.866.CSG.1719 or CLICK HERE to contact us today.
Corporate Synergies is pleased to provide regular updates on issues affecting group benefits insurance. As an insurance broker and consultant, Corporate Synergies monitors federal and state legislative and regulatory activity to ensure that you stay informed. |
