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Topics Map > FUNCTIONAL AREA > Benefits (BN)
BN - Benefits Billing Delinquency Report
Benefits billing functionality provides the ability to charge employees directly for insurance benefits as opposed to having them pay through payroll deduction. 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. The UWSC Benefits Team prepares and distributes the monthly Delinquency Report around the 15th of each month to the institutions. This procedure covers how to work the benefit billing delinquency report and what action is required by the institution due to non-payment or the employee's decision to let coverage end.
- Benefits billing statements are created, printed, and mailed on a monthly basis around the 20th by the UWSC. 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 UWSC.
- 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.
- See Benefits Billing - Detailed Job Aid resources below.
RESPONSIBILITIES OF THE INSTITUTION
a. Paid in Full (Employee)
b. Cancel/Lapse (if not paid)
c. Payment Plan (please explain what the payment schedule is)
d. Take by Payline
e. See WiscIt (add WiscIt #)
a. Review Employee Balances (Main Menu > Benefits > Benefits Billing > Manage Acct Status and Balance > enter Empl_ID, click Search)
b. Enroll In Billing (Main Menu > Benefits > Benefits Billing > Manage Acct Status and Balance > enter Empl_ID, click Search)
c. Job Data (Main Menu > Workforce Administration > Job Information > enter Empl_ID, click Search)
d. Insurance Enrollment screens/Base Benefit Pages (Main Menu > Benefits > Enroll In Benefits > enter Empl_ID, click Search)
General Information that will be provided to the employee:
a. If the insurance is lapsed for non-payment while on Leave of Absence (LOA):A Termination of Insurance letter (sent out by UWSC) will inform the employee of the effective date that their insurance(s) have been lapsed. If they are within their grace period, the letter will indicate the date the check must be received by the UWSS Service Operations 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). *b. If the insurance is cancelled for non-payment of premium by active employee:A Termination of Insurance letter will inform the employee the effective date that their insurance(s) have been cancelled regardless of whether they are within their 30-day grace period or not. If they are within their grace period, the letter will indicate the date the check must be received by the UWSS Service Operations to restore their coverage(s). *c. If the insurance is cancelled for non-payment of premium by a terminated employee:A Termination of Insurance letter will inform the employee the effective date that their insurance(s) have been cancelled. Typically in this situation, the grace period has expired. The employee will have no COBRA/Continuation rights since this is considered a voluntary cancellation, even though they had received a COBRA Notice earlier. *
d. If the insurance is cancelled for non-payment of premium by a retiring employee:
6. See Related Links section below for sample Delinquency Notice and Termination of Insurance Letter.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 their health insurance is cancelled, they will no longer be eligible for a certification of their Sick Leave Credit, since the employee must be covered under an ACTIVE State Group Health plan at time of retirement. Any other insurances we cancel, they will not be eligible for continuation, even if they did receive a Continuation form. (This includes the State Group Life insurance plan.)
- Current date is March 30, 2018. The employee’s last paid through Coverage Month is 1/1/2018 - 1/31/2018 (1712 billing period). The grace periods have already expired, so they have no reinstatement rights.
- Current date is March 15, 2018. The employee’s last paid through coverage month is 2/28/2018 (1801 billing period). They are still within the 30 days, so they have reinstatement rights if we receive their payment by March 30, 2018.
RESPONSIBILITIES OF THE UW SERVICE CENTER
- 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
- UWSC will add our suggested action in Column C “UWSC Comments”
- The automated Delinquency Notices will be created, printed, and mailed on the 15th of each month from the UWSC to employees with delinquent accounts. A copy of the notice will be placed in Cypress for 6 months.
- As institution’s Action Plans are received, we will add them to the central (system-wide) Delinquency Report
- Around the 15th of the month Delinquency Notices will be created and stored in Cypress. The UWSC will print these notices and mail to the employees.
- Towards the end of the month, we will review the central Delinquency Report and determine what action is required and add our comments in Column A under “Action Taken By UWSC” and email the FINALIZED Delinquency Report to each institution.
- For employees marked Cancel/Lapse, we will terminate the
employee's insurances in HRS, communicate the cancellation to the vendors, inactivate
the Benefits Billing enrollment, and adjust any open charges to $0.00.
- Note: terminated employees require the use of Correct History to cancel their insurances
- If required, we will process refunds to employees, or add Payline Adjustments to collect missing premiums via payroll deduction.
- At the end of the month, if payment has not been received, we will prepare and mail the Termination of Insurance letter to the employee and provide a copy to the institution.
- The UWSC will prepare and mail the final letter to the employee letting them know their insurance has been cancelled/lapsed due to non-payment.
- If an employee with terminated insurance sends payment within the grace period, we will reinstate their insurances, communicate the reinstatement to the vendors, re-activate the Benefits Billing enrollment, adjust Benefits Billing charges, allocate the payment, and notify the institution.
- If payment is not received timely, the insurance CANNOT be
reinstated. We will return the check to the employee and send
an email to the Institution informing them of the final decision.
ADDITIONAL RESOURCESRelated KBs:
- BN - Printing a Manual Benefits Billing Invoice
- BN - Benefits Billing Enrollment
- BN - Benefits Billing Charge and Payment Review
- BN - Requesting Benefits Billing Refunds
- BN - Review Benefit Enrollments
- Benefits Billing Landing Page
- UWSHR Leave of Absence Website
- Benefit Billing: Coverage Lapse for Non-Payment, Payment Grace Periods and Reinstatement of Coverage Provisions for Active Employees
- Benefits Billing Delinquency Detailed Job Aid
- Benefits Billing Delinquency Notice - Sample (stored in Cypress)
- Benefits Billing Termination of Insurance Letter - Sample