Health insurance companies typically generate bills a month before the bill is due, so it can take 1-2 billing cycles for employee/dependent changes to be reflected on your invoice.
If you recently added an employee/dependent:
- They do have insurance coverage from their confirmed effective date although they may not be on the invoice for that month.
- You will typically see this employee/dependent on your invoice the month after their effective date and they will be billed for two months premiums.
Example: Employee A is added to the SimplyInsured dashboard on 12/20 for a 1/1 effective date. Their monthly premium is $400 a month. Because the health insurance company has already generated the invoice for January, Employee A is not listed on the bill. On the February invoice, premiums for the months of January and February are included in the invoice for a total of $800.
*Note: You should begin withholding deductions from the employee's paycheck from their effective date.
If you recently terminated an employee/dependent:
- Their health insurance will run through the end of the month of their termination. Health insurance companies begin coverage on the first day of the month and terminate coverage on the last day of the month.
- You will typically see that employee/dependent listed on the invoice the month after their termination and should pay the entire bill while the insurance company processes the termination.
- The subsequent month any premiums charged for the terminated employee (and dependents if applicable) will be refunded to you the form of a credit.
Example: Employee B is terminated on the SimplyInsured dashboard on 12/10 and their insurance will end 12/31. Their monthly premium is $300 a month. Because the health insurance company has already generated the invoice for January, your company will still be billed for Employee B's premiums for $300. You will then see a credit of -$300 on your February invoice for Employee B.
*Note: If you terminate your employee early in the month, you can withhold their deductions for the entire month on their last paycheck.
If you have any questions about this, please submit a request to our customer care team at the link below: