What Does The Original Application Say?
Most employers pay their group health insurance premium in advance of the month. (Actually, you're supposed to.) For example, the May premium is due on or before the end of April.
What happens then if an employee quits on May 8th and has no desire to elect COBRA? Is the employer on the hook for the full month’s premium?
The Employer Group Application addresses that question, and more.
Coverage can end on the ‘event’ date’ or at the end of the month following the ‘event.’
Likewise, you elect on the application when coverage for a new hire beings; e.g., fist of the month following 60 days from date of hire, 60 days from hire date, etc.
Fortunately, you can amend the employer application off anniversary.
That said, always pay the amounts billed and wait for credits to show up on a subsequent invoice.
After all, you’re always in a better cash flow position than a big insurance company.
And that my friends is the kind of snarky comment that comes from a prediction of snow as I write this Tip!
