As part of a severance package, an employer may wish to offer an extension of group benefits beyond the member’s termination date. Prior approval from the Insurer is required before any extension of benefits can be offered to the member. The employer may select which benefits they would like to offer to the employee; coverage can be extended for all benefits with the exception of disability benefits.
The Insurer requires the following information for their review:
- The member’s last scheduled day of work
- Duration of the requested extension
- Benefits to be extended
- Copy of any existing HR policy wording that you may have for these situations
Tip!
- Contact your GroupHEALTH Representative before offering severance that includes group benefits. Approval or decline is provided by the Insurer.