Handling Employee Benefits Premium Credits: Guidance for Employers
Several benefits carriers across a number of states have announced premium credits for health or dental coverage due to COVID-19 and lower than normal claim volumes. This is mostly attributed to members either canceling or delaying services because of social distancing.Each carrier is a little different on how they are giving the credit. For some it is in the form of reduced premiums, others it is in the form of an actual credit on your bill.
How Credit Should Be Shared With Employees
It is important these credit amounts are shared with employees in a way that is similar to the current employer-employee split in the premiums. If the premiums are 100 percent employee-paid, the full credit would need to be given back to the employees in the form of reduced payroll deductions. If the premiums are split 50/50, the credit would also need to be split equally with employees and divided amongst the current population enrolled in the plan since Jan. 1, 2020.
If you need assistance in determining the appropriate percentage split or have a hybrid level-funded plan, please contact your North Risk Partners advisor. Don’t have an advisor? No problem. We’ll help you find one.
Our Mission of Service
Our team at North Risk Partners will continue to monitor the situation related to the COVID-19 outbreak and send you information as it becomes available. We are here to help you through this and face the risk of this virus head on, which to us is about helping you proactively control what you can control with facts and evidence-based information. Thank you for continuing to trust us with your business and doing your part to help protect our communities by controlling the spread of COVID-19.
FACE RISK HEAD ON
This regulatory update is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel for legal advice.