sample letter to inform patients dropping insurance

#Sample letter to inform patients dropping insurance how to
#Sample letter to inform patients dropping insurance professional

The way you write a termination of benefits letter could have a significant impact on employee morale.

#Sample letter to inform patients dropping insurance how to

How to write a termination of benefits letter Develop these letters within the context of the reason for the loss or change of benefits. There are several scenarios that warrant a termination of benefits letter, such as when you switch PEOs or fire an employee. It might be useful to set up training with the new HR outsourcing company or PEO service provider to help your employees navigate the new benefits package. If your company’s benefits package has changed, you have a responsibility to direct the affected employees on how to replace their lost coverage or benefits through the new plan. While you might want to be concise and direct in this letter, you should thoroughly account for legal considerations associated with termination. When you fire an employee, it is of utmost importance to document every step of the termination process. Naturally, each of these scenarios calls for a different approach to communicating the reason for the termination of benefits.

When an employee departs a company voluntarily.

#Sample letter to inform patients dropping insurance professional

When a company changes HR or professional employer organization (PEO) service providers and offers a different benefits package as a result.When a company alters its benefits package.These are some scenarios that call for a termination of benefits letter: When is a termination of benefits letter needed? If a particular type of healthcare coverage changes, send a loss of coverage letter instead. Termination of benefits letters are an important part of benefits administration and should be sent when your company’s benefits package changes significantly or when an employee departs the company. If an employee’s entire healthcare plan is no longer supported under the company benefits package, the employer should send a termination of benefits letter. “A loss of coverage letter pertains specifically to healthcare, whereas a loss of benefits applies to a benefits package more broadly.”įor example, Bax said, if an employee’s spouse is no longer covered under a dental healthcare policy because of changes in a benefits plan, an employer should send a detailed loss of coverage letter explaining the reason.

“A termination of benefits letter is written to employees, informing them that one or more of their current benefit plans, either in its entirety or partially, is no longer available to them,” said Rolf Bax, chief marketing officer at Resume.io.

There is a difference between a termination of benefits letter and a loss of coverage letter: A termination of benefits letter is used when a benefits plan is being scrapped or altered significantly, while a loss of coverage letter is used when a specific type of coverage is no longer provided under a company’s benefits plan. “This could be anything from insurance coverage to travel benefits.” Termination of benefits letter vs. “ termination of benefits letter is needed to ensure that an employee is made aware of the loss of some benefits,” Tate said. Stanley Tate, founder of Tate Law, said a termination of benefits letter is necessary to explain precisely which benefits an employee is losing. This loss of benefits can occur when a company’s benefits package changes, such as when the company switches PEO service providers, or when an employee departs the company.

What is a termination of benefits letter?Ī termination of benefits letter is an explanation from an employer to an employee of any major changes to a benefits package that will result in a loss of insurance coverage or certain benefits. It should also include helpful information to guide an employee’s next actions to promptly replace their insurance coverage or other important benefits. Anytime those benefits change significantly, whether it’s because a company switches benefits providers or an employee leaves the company, employers or their HR reps should send the affected employees a termination of benefits letter that details what these employees can expect.īecause these benefits often cover an employee’s family as well, a termination of benefits letter should be written with sensitivity and understanding. Many employees consider benefits packages a major incentive for working with a particular company.