Contact your Client Service Coordinator prior to offering an employee extension of benefits, Insurer approval is required prior to the termination date!
As part of a severance package, an employer may wish to offer an extension of employee group benefits beyond the employee’s termination date. Benefits extended beyond termination do not include Disability coverage or Emergency Travel Assistance.
The following information is required by the Insurer to review the request:
- the employee’s last scheduled day of work duration of the requested extension.
- whether the employee will remain on payroll or be paid out in a lump sum.
- whether the employee will be “consulting” for your company after termination.
Tip!
- Contact your Client Service Coordinator or Billing Administration before offering a severance package that includes group benefits. Approval or decline is strictly at the Insurer’s discretion.
- Continued coverage in an Employee and Family Assistance Plan (EFAP) does not require pre-approval, as it is employer paid.