Reviewing the Benefits Billing Delinquency Report in HRS

Overview

Once an employee is enrolled in Benefits Billing, they are invoiced on a monthly basis. If an employee does not remit payment by the due date, they will be listed on the Delinquent Accounts Report. This procedure covers how to work the Benefits Billing Delinquency Report and what action is required by the institution due to non-payment or the employee's decision to let coverage end.

Process Considerations:

  • Benefits Billing statements are created, printed, and mailed on a monthly basis around the 20th by the UWSS. The billing statements will be stored in Cypress for 3 months.

  • Payments are due by the 10th of the month prior to the coverage month. If late invoicing, the 10th of the month following the first invoice.
  • If payment is not received by the 14th of the month, it is considered delinquent.

  • Automated Delinquency Notices will be created, printed, and mailed on the 15th of each month by the UWSS centralized process.
  • An employee’s insurance will be cancelled for non-payment of premium if premiums are not paid timely.  If the insurance is cancelled, the employee may only have their insurance reinstated if they make payment in full within the grace period, which is normally 30 days from the last paid through date

  • An employee on a leave of absence will have their insurance lapsed for non-payment if premiums are not paid timely. If the insurance is lapsed, the employee will have 30 days from return to work to submit applications to their institution to restore their insurances.

1. The institution must review the monthly Delinquency Report, make their comments in Column B “Campus Action Plan”, and then return the report to the UWSS Benefits Team within 5 working days following the instructions in the email. 
  • Common Action Plans institution can respond with include:
    • Paid in Full (Employee)
    • Cancel/Lapse (if not paid)
    • Payment Plan (please explain what the payment schedule is)
    • Take by Payline 
    • See WiscIt (add WiscIt #)
BB Situations
  • When reviewing the employee, look to see if a payment has been made or if there's been any insurance or job data changes by review the following HRS screens:
    • Review Employee Balances: Main Menu > Benefits > Benefits Billing > Manage Acct Status and Balance, enter Empl_ID and click Search
    • Enroll In Billing: Main Menu > Benefits > Benefits Billing > Manage Acct Status and Balance, enter Empl_ID and click Search
    • Job Data: Main Menu > Workforce Administration > Job Information, enter Empl_ID and click Search
    • Insurance Enrollment screens/Base Benefit Pages: Main Menu > Benefits > Enroll In Benefits, enter Empl_ID and click Search
2. The Delinquency Notice is mailed from the UWSS on the 15th of each month and are available in Cypress for 6 months. The campus may follow-up with the employee if they wish, but it is not required.

3. Around the first of the month following, institutions will receive the finalized Delinquency Report, indicating what action has been taken with their employees. 

4. If an employer error occurred which caused significant past due premiums, and the employee states they are unable to afford the charges, the institution may establish a payment plan. If a payment plan has been established and the employee is enrolled in Benefits Billing, forward a copy of the payment plan to the UWSS Benefits Team to monitor payments.

5. If an employee's insurance is terminated due to non-payment of premium, then UWSS Benefits Team will prepare and mail the final written communication to the employee. A copy will be provided to the institution and attached to the Delinquency Report ticket. This is considered a voluntary loss of coverage therefore COBRA provisions do not apply.


General Information That Will be Provided to the Employee

If the insurance is lapsed for non-payment while on Leave of Absence (LOA):
A Termination of Insurance letter will be sent to inform the employee of the effective date that their insurance(s) have been lapsed. If they are within the grace period, the letter will indicate the date the check must be received by the UWSS to restore their coverage. Otherwise, the employee has 30 days from returning to work from their LOA to submit applications to their institution to to restore their coverage(s). *
If the insurance is cancelled for non-payment of premium by an active employee:
A Termination of Insurance letter will be sent to inform the employee of the effective date that their insurance(s) have been cancelled, regardless of being within the grace period or not.  If they are within the grace period, the letter will indicate the date the check must be received by the UWSS to restore their coverage(s). *
If the insurance is cancelled for non-payment of premium by a terminated employee:
A Termination of Insurance letter will be sent to inform the employee of the effective date that their insurance(s) have been cancelled.  More than likely, in this situation, the grace period has expired. The employee will not have COBRA/Continuation rights since this is considered a voluntary cancellation even though they had received a COBRA Notice earlier. *
If the insurance is cancelled for non-payment of premium by a retiring employee:
If the employee has retired and has outstanding charges, the institution needs to let the employee know the consequences of not paying those charges.
If health insurance is cancelled, they will no longer be eligible for a certification of Sick Leave Credit, since the employee must be covered under an ACTIVE State Group Health plan at time of retirement.  
If any other insurances are cancelled, they will no longer be eligible for continuation, even if they received a Continuation form. (This includes the State Group Life insurance plan.)


*Coverage Lapse for Non-Payment, Payment Grace Periods and Reinstatement of Coverage Provisions for Active Employees:

Insurance will be terminated for non-payment if payment is not received by the last business day of the month prior to the coverage month. To reinstate coverage the employee must make FULL payment within 30 days from the last paid through date (life insurances have 31 days and AD&D has 60 days). Otherwise, the insurance will remain cancelled/lapsed until there is a Qualifying Event or an Annual Benefit Enrollment (ABE) opportunity that would allow re-enrollment.

Examples:
  1. Current date is March 30, 2020.  The employee’s last paid through coverage month is 1/1/2020 - 1/31/2020 (1912 billing period). The grace periods have already expired, so the employee does not have reinstatement rights.

  2. Current date is March 15, 2020.  The employee’s last paid through coverage month is 2/29/2018 (2001 billing period). The employee is still within the grace periods, so they have reinstatement rights if payment is received by March 31, 2020.


Responsibilities of the UWSS Benefits Team

1. Prepare the Benefits Billing Delinquency Report for all institutions around the 15th of each month. 
  • The report will be split and emailed to each institution.
  • The UWSS Benefits Team will add suggested actions in Column C “UWSS Comments”
2. The Delinquency Notices will be created, printed, and mailed on the 15th of each month by the automatic process to employees with delinquent accounts.
  • A copy of the notice will be placed in Cypress for 6 months.
3. The UWSS Benefits Team will add institution's Action Plans to the Central Delinquency Report as they are received.

4. The UWSS Benefits Team will review the Central Delinquency Report at the end of the month and determine what action is required. Comments will be added in Column A under "Action Taken by UWSS". FINALIZED Delinquency Reports will be emailed to each institution.

5. The UWSS Benefits Team will terminate employee's insurances in HRS marked Cancel/Lapse on the report, communicate the cancellation to the vendors, inactivate Benefits Billing enrollments, and adjust any open charges to $0.00.
Note: Terminated employees require the use of Correct History to cancel their insurances.
6. The UWSS Benefits Team will process refunds to employees or add payline adjustments to collect missing premiums via payroll, if required.

7. The UWSS Benefits Team will prepare and mail the Termination of Insurance letter to the employee, and provide a copy to the institution, letting them know insurance has been cancelled/lapsed due to non-payment if payment has not been received by the end of the month.

8. The UWSS Benefits Team will reinstate insurances, communicate the reinstatement to the vendors, re-activate Benefits Billing enrollments, adjust Benefits Billing charges, allocate the payment, and notify the institution if an employee with cancelled/lapsed insurance sends full payment within the grade periods.
  • If payment is not received timely, the insurance CANNOT be reinstated. The check will be returned to the employee and an email will be sent to the institution informing them of the final decision.

Additional Resources

Related KBs:
Related Links:

Get Help

  • Click HERE to contact UW Shared Services - Service Operations Department or HERE for the UWSS IT HelpDesk if you have any issues with these instructions.




Keywords:late bill, drop coverage, delinquent account, benefits billing, lapse in coverage, delinquency report, SGH, Plan Type 10, 10, ICI, SGL, Delta Dental, VSP, UIA, BN, Benefits BN, Benefits   Doc ID:82438
Owner:Christina S.Group:UW–Shared Services
Created:2018-05-24 11:26 CDTUpdated:2020-07-24 10:59 CDT
Sites:Human Resource System (HRS), UW-La Crosse, UW–Shared Services
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