Topics Map > Human Resource System (HRS) > Benefits Administration
Reviewing the Benefits Billing Delinquency Report in HRS
OverviewThis procedure covers how to work the Benefits Billing Delinquency Report and what action is required by the institution. Once an employee is enrolled in Benefits Billing, they are invoiced on a monthly basis. If an employee does not remit payment by the due date, they will be listed on the Delinquent Accounts Report.
- Automated Delinquency Notices will be created, printed, and mailed on the 15th of each month by the UW-Shared Services centralized process.
- If payment is not received by the 14th of the month, it is considered delinquent.
- An employee on a leave of absence will have their insurance lapsed for non-payment if premiums are not paid timely.
- Employees will have 30 days from return to work to submit applications to their institution to restore their insurances.
- An employee not on a leave of absence will have their insurance cancelled for non-payment if premiums are not paid timely.
- If the insurance is cancelled, the employee may only have their insurance reinstated if they make payment in full within the grace period.*
- Employees do not have reinstatement rights upon return to work unless there is a qualifying event or Annual Benefit Enrollment opportunity.
- Employees will receive a Termination of Insurance Letter if insurance has been lapsed or cancelled due to non-payment.
Responsibilities of the Institutions
1. The institution must review the monthly Delinquency Report, make their comments in Column B “Campus Action Plan”, and then return the report to UWSS within 5 working days following the instructions in the email.
Common Action Plans Institutions can respond with include:
a. Paid in Full
b. Cancel/Lapse (if not paid)
c. Payment Plan (explain the payment schedule requested)
d. Take by Payline (employee has returned to work)
When reviewing an employee, look to see if a payment has been made or if there has been any insurance or job data changes in following HRS screens:
a. Review Employee Balances: Main Menu > Benefits > Benefits Billing > Manage Acct Status and Balance, enter Empl_ID and click Search.
b. Enroll In Billing: Main Menu > Benefits > Benefits Billing > Manage Acct Status and Balance, enter Empl_ID and click Search.
c. Job Data: Main Menu > Workforce Administration > Job Information, enter Empl_ID and click Search.
d. Insurance Enrollment: Main Menu > Benefits > Enroll In Benefits, enter Empl_ID and click Search.
2. The Delinquency Notice is mailed from UWSS on the 15th of each month and are available in Cypress for 6 months. The campus may follow-up with the employee if they wish, but it is not required.
3. Around the first of the month following, institutions will receive the finalized Delinquency Report indicating what action has been taken with their employees.
4. If a payment plan has been established and the employee is enrolled in Benefits Billing, forward a copy of the payment plan to UWSS to monitor payments.
5. If an employee’s insurance is cancelled or lapsed due to non-payment, UWSS will prepare and mail a Termination of Insurance Letter to the employee. The institution can request a copy of the letter if needed.
Note: If an employee who has been lapsed/cancelled due to non-payment has transferred to another state agency and a Personnel Transfer Record (PTR) has already been sent to the receiving agency, and it is within a reasonable time, reach out to the new state agency to let them know the employee is not eligible to enroll with them. If the unpaid premiums are not found timely, do not reach out to the new state agency and coverage will not be terminated.
General Information That Will be Provided to the Employee
1. If the insurance is lapsed for non-payment while on Leave of Absence (LOA):
A Termination of Insurance letter will be sent to inform the employee of the effective date that their insurance(s) have been lapsed. If they are within their grace period, the letter will indicate the date the check must be received by UWSS to restore their coverage. Otherwise, the employee has 30 days from returning to work from their LOA to submit applications to their institution to restore their coverage(s).*
2. If the insurance is cancelled for non-payment of premium by an active employee:
A Termination of Insurance letter will inform the employee of the effective date that their insurance(s) have been cancelled, regardless of being within the grace period or not. If they are within the grace period, the letter will indicate the date the check must be received by the UWSS Service Operations to restore their coverage(s).*
3. If the insurance is cancelled for non-payment of premium by a terminated employee:
A Termination of Insurance letter will inform the employee of the effective date that their insurance(s) have been cancelled. More than likely in this situation, the grace period has expired. The employee will have no COBRA/Continuation rights since this is considered a voluntary cancellation even though they may have already received a COBRA Notice.*
4. If the insurance is cancelled for non-payment of premium by a retired employee:
If the employee retired and has outstanding charges, the institution needs to let the employee know the consequences of not paying the charges.
If health insurance is cancelled, they will no longer be eligible for a Certification of Sick Leave Credit, since the employee must be covered under an ACTIVE State Group Health plan at time of retirement.
If any other insurances are cancelled, they will no longer be eligible for continuation even if they received a COBRA/Continuation form. (This includes the State Group Life insurance plan.)
*Coverage Lapse for Non-Payment, Payment Grace Periods, and Reinstatement of Coverage Provisions for Active Employees:
Insurance will be terminated for non-payment if payment is not received by the last business day of the month prior to the coverage month. To reinstate coverage the employee must make FULL payment within 30 days from last paid through date (the life insurances have 31 days and AD&D 60 days). Otherwise, the insurance will remain cancelled/lapsed until there is a Qualifying Event or an Annual Benefit Enrollment (ABE) opportunity that would allow them to re-enroll.
Current date is March 30, 2020. The employee’s last paid through coverage month is 1/1/2020 - 1/31/2020 (1912 billing period). The grace period has expired, so the employee does not have reinstatement rights.Current date is March 15, 2020. The employee’s last paid through coverage month is 2/29/2020 (2001 billing period). The employee is still within the grace period, so they have reinstatement rights if payment is received by March 31, 2020
Responsibilities of the UWSS Benefits Team
1. Prepare the Benefits Billing Delinquency Report for all Institutions around the 15th of each month.
a. The report will be split and emailed to each institution.
2. The Delinquency Notices will be created, printed, and mailed on the 15th of each month to employees with delinquent accounts.
a. A copy of the notice will be held in Cypress for 6 months.
3. UWSS will add institution’s Action Plans the to the Central Delinquency Report as they are received.
4. UWSS will review the Central Delinquency Report at the end of the month and determine what action is required for each employee. Comments will be added in Column A under “Action Taken by UWSS”. Then the FINALIZED Delinquency Reports will be emailed to each institution.
5. For employees marked Cancel/Lapse, UWSS will terminate the employee's insurances in HRS, communicate the cancellation to the vendors, inactivate the Benefits Billing enrollment, and adjust any open charges to zero -0-.
Note: Terminated employees require the use of Correct History to cancel their insurances.
6. If required, UWSS will process refunds to employees or add payline adjustments to collect missing premiums via payroll deduction.
7. If payment has not been received at the end of the month, UWSS will prepare and mail the Termination of Insurance letters to employees letting them know insurance has been cancelled/lapsed due to non-payment. Institutions can request a copy of the letter if needed.
8. If an employee with cancelled/lapsed insurance sends full payment within the grace period, UWSS will reinstate insurances, communicate the reinstatement to the vendors, re-activate the Benefits Billing enrollment, adjust Benefits Billing charges, and allocate the payment.
a. If payment is not received timely, the insurance CANNOT be reinstated. The check will be returned to the employee and an email will be sent to the Institution informing them of the final decision.
a. If unpaid charges balance is less than $200.00, UWSS will collect the amount due from the campus.
b. If unpaid charges balance is equal to or greater than $200.00, UWSS will send the unpaid changes to the Department of Revenue for collection.
Additional ResourcesRelated KBs:
- Printing a Manual Benefits Billing Invoice in HRS
- Entering Benefits Billing Enrollments in HRS
- Reviewing Benefits Billing Charges and Payments in HRS
- Requesting Benefits Billing Refunds in HRS
- Review Benefit Enrollments in HRS
- Setting Up Benefits Billing Manual Charges in HRS
- Reprinting Benefits Billing Reprint Invoices in Cypress
- UW Shared Services Benefits Billing Landing Page
- UWSHR Leave of Absence Website
- Benefit Billing: Coverage Lapse for Non-Payment, Payment Grace Periods and Reinstatement of Coverage Provisions for Active Employees
- Benefits Billing Delinquency Detailed Job Aid
- Benefits Billing Delinquency Notice - Sample (stored in Cypress)
- Benefits Billing Termination of Insurance Letter - Sample