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Suplimental Insurance
Benefits & Compensation
Suplimental Insurance
Exchange ideas about health plans, retirement, work/life benefits, and employee assistance.
Our company of 30 employees recently learned that our bookkeeper entered the firm into a supplimental insurance plan and only told a few employees. We already have a plan in place with another firm, b
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Forums » Topic Forums » Benefits & Compensation » Suplimental Insurance
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Suplimental Insurance
posted at 2/26/2009 8:04 AM EST
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Posts: 4
First: 2/26/2009 Last: 1/6/2011 |
Our company of 30 employees recently learned that our bookkeeper entered the firm into a supplimental insurance plan and only told a few employees. We already have a plan in place with another firm, but she didn't find it a "big deal" to have 2 plans. To keep this short, we are now cancelling the 2nd plan and giving employees who signed up w/the 2nd plan a 30 days notice.
Has anyone ever experienced this - and is 30 days enough notice? |
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Suplimental Insurance
posted at 2/26/2009 8:32 AM EST
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Posts: 2146
First: 2/15/2006 Last: 9/14/2011 |
Were these deductions taken pretax? If so you might have some issues with your Section 125 plan document if this one wasn't listed. It might be that you will have to go back and tax those deductions.
Was this an outside plan like AFLAC? If so, unless your first plan doesn't allow for another plan/competitor under it's contract and it was not a pretax benefit, I am not seeing the big problem. Will they be able to join the current plan? Are the premiums about the same? I would be calling my insurance broker for that plan to see what needs to be done. And then I would be asking whether the bookkeeper overstepped her authority to allow this plan/sales. |
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Suplimental Insurance
posted at 2/26/2009 9:11 AM EST
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Posts: 4
First: 2/26/2009 Last: 1/6/2011 |
Thanks for the reply. We've checked into everything you mentioned. The BK definitley overstepped authority by signing off as a legal representative - and didn't think to tell HR until after the fact. Which caused a need to offer the plan to all employees and not just the few she talked to and had sign up. Anyway, I'm just hoping that a 30 day cancellation notice is fair to the employees. Thanks again for your response - at least I know I've covered the necessary bases. |
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Suplimental Insurance
posted at 2/27/2009 7:52 AM EST
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Posts: 1047
First: 4/11/2002 Last: 9/14/2011 |
It should be enough notice. And employers shouldn't be offering multiple voluntary benefit platforms. It causes employee confusion. If you want my true opinion, employers shouldn't be offering ANY voluntary insurance unless it's properly designed, carefully implemented and efficiently communicated. Most representatives of voluntary insurance are just hocking product. They tell you all the reasons why you should offer the insurance(s), but don't tell you that the benefits tend to be limited, are hard to understand and are extremely over-priced. AFLAC is probably the worst of all the companies. |
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