You can also add the employee's end date in your HRASimple Employer Portal.
Can my employees keep their health insurance plan?
Employees departing your company have three options for their insurance plan:
- Cancel their insurance plan. The employee will continue to be covered until the last day of the month that they separate from your company.
- Keep their plan but take over payments of the premiums. Employees own their health insurance policy and can keep it even if they switch jobs. HRASimple will work with them to take over payment of their monthly health insurance premium if they are enrolled in PremiumPay. If they have an HRA Account ("Health Wallet), your employee has up to 90 days after their last day to submit expenses for reimbursement. The expenses must be incurred while they are actively employed. After 90 days, the employee will forfeit any unspent money in their Health Wallet
- Enroll in COBRA. Under COBRA, HRASimple will continue to pay your employee's premiums and will invoice the employee the full amount of their premiums plus a 2% administrative fee. Your employee will keep their Health Wallet balance until they unenroll from COBRA. They can also use Health Wallet to pay for expenses incurred after their last day with your company.
Am I still responsible for paying my employee's premiums?
No. If you inform us of your employee's last day early enough, we will not invoice you for their premiums for the following month.
However, if you have already paid your invoice for the following month, we will reimburse you the cost of their premiums.
Please note: Requests must be submitted in a timely manner. Carrier terminations normally occur at the end of the month that the plan cancellation is requested. We cannot guarantee that insurance carriers will process plan terminations retroactively. Please allow 2-3 business days to process all plan terminations.