Have You Completed an Employee Exit Interview and Disposed of Health Benefits Plans at Work? Assuming You have handed in your resignation letter and attended an exit interview with human resources before bidding farewell at a going-away party – but now what? Your employer-provided health coverage must cease when the time for change arrives!
Job-based coverage usually expires upon your last day or end of month of employment; however, in certain instances it can be extended under COBRA or another similar policy.
Last Day of the Month
Employer health insurance plans vary based on each company’s guidelines and rules, although usually ending on your final working day or end of month is typically expected. To understand your employer’s policies better, speak to their human resources department or consult your benefits documentation – but be wary that any termination can occur abruptly and unexpectedly!
If you plan to leave your job soon, it would be prudent to plan your last day early in the month. This will allow you to utilize your employer’s health coverage for several more days and give yourself time to decide on your next steps. Furthermore, COBRA coverage allows you to continue with previous employer group health policies, though you will have to cover 100% of premium payments yourself.
Once your employer-sponsored health insurance has expired, you can start looking for new health plans. There is plenty of choice available when it comes to individual and family plans; sign up quickly in order to avoid lapses in coverage.
Transition periods offered by most employers help former employees avoid such devastating lapses in coverage, typically starting on the first full month after leaving employment and lasting up to 90 days post-termination. Former employees still eligible for reimbursement may use their existing health insurance plan until it expires, at which point they should find their own individual or family health coverage plan. Transition periods are intended to assist current and former employees who have preexisting conditions with transitioning smoothly between employer-sponsored health coverage and individual or family plans available on the private marketplace. They can especially prove helpful for individuals concerned about how well their health insurance will fare under private arrangements.
Last Day of the Year
Employers who offer calendar year plans need to remember that the final day of their plan year marks the last month of employment for any employee who retires or leaves prior to its conclusion, so as to prevent overcharging for benefits contributions and avoid potential overcharges from their benefits provider.
Your employer-sponsored health insurance depends on a few different factors, including when you leave your job and which policy or type of coverage was purchased. Since employers do not owe employees coverage after leaving, typically this policy will end on the last day of the month you worked your final shift.
If you were recently fired or laid off, COBRA may still allow you to retain some coverage from your former employer for up to 18 months; however, its full cost will fall upon you; so it is wise to quickly find alternative health coverage solutions.
Open enrollment ends for individuals without qualifying events on January 15. It’s crucial that they enroll in a marketplace plan before then to have coverage starting January 1, 2024. Missing this date would require waiting until next open enrollment period to re-enroll.
On the final day of each year, it is also an ideal opportunity to update your beneficiary information, including names and contact details of anyone who may need benefits in the future. It is also essential that we maintain your current address so we can send our monthly statements as promised.
No matter when your employer-sponsored health insurance runs out, it is always advisable to remain covered. Unexpected medical bills can quickly reach into the thousands. There are various affordable and accessible solutions available to help get back on your financial feet such as healthcare marketplace plans, private insurers and state-funded programs – these options may all help put things back in balance financially.
Last Day of the Enrollment Period
Open enrollment season is an integral component of employer-sponsored health insurance plans for employees who rely on them, offering the chance to make adjustments or enroll in new coverage as needed – or drop their current plan entirely if necessary. It’s wise to remember your deadlines during this period, as missing one could mean either having no coverage until next year, or incurring penalties under the Affordable Care Act.
Many employees forfeit their employer-sponsored health insurance upon resignation or termination from their job, depending on each company’s policy; usually this occurs either on an employee’s last day of work or at the end of each month in which they no longer work at that company. When this occurs, former employees should investigate their options for continuing healthcare coverage through COBRA or through other avenues such as individual/family marketplace.
Employers offering healthcare coverage should make clear to their employees that changing or renewing their plan(s) during open enrollment period is limited if they miss the deadline, which should be communicated through multiple reminders regarding open enrollment dates and deadlines such as email notifications, social media posts or in-person meetings with HR representatives.
Employees should recognize that while some may stay on top of the open enrollment process and submit all required documents promptly, others are less diligent. Whether due to forgetfulness or busy schedules, employees need to realize that missing open enrollment deadline limits their options for health coverage if it passes them by; special enrollment periods will open if life status events such as marriage/divorce/children occur within this period; for instance.
Employees without qualifying events who were unable to enroll during a special enrollment period will have to wait until 2023’s open enrollment period to re-enroll in their employer-provided health plans. Individuals seeking their own coverage should explore options like shopping around for competitive rates on an individual/family marketplace or exploring Medicaid/Children’s Health Insurance Program coverage as they might also provide options.
Last Day of the Grace Period
Once your resignation letter and exit interview with HR have been accepted, and your going-away party completed, now it is time to find another job and explore your health insurance options.
Most employers’ group plans terminate at the end of your final month of employment; if you resign early in that month, however, you may have several weeks to secure another job while keeping current coverage. As an alternative option to COBRA (a temporary health plan that allows you and your family to continue previous employer coverage at an increased cost), or purchasing individual coverage through marketplace, take steps within 60 days after ending employment to avoid gaps in coverage.
If you were enrolled in a qualified health plan (QHP) and received advanced premium tax credits (APTC), after your employer coverage ends you have until the runout period to submit expenses for reimbursement; should any premium payments go unpaid during this time, an automatic grace period can take place that varies by insurer and state regulation or law.
Assume Jane’s employer’s QHP ends on April 30. Since she made on-time payments for June and July but missed May, she is eligible for a three-month grace period set forth by state regulations or laws.
Grace periods depend on both plan terms and your employer’s policy, with length being dependent upon both. With automatic enrollment in a marketplace plan, there will be no grace period – you can easily check your enrollment status online or contact the help line to learn about all your options. Likewise, should an unexpected qualifying event result in the loss of employer-sponsored coverage, special enrollment periods allow individuals to enroll in Marketplace plans during such an emergency situation; read up on deadlines here.
