- 500
I am going to get an ulcer over this Group. I have a group that has a involuntary Group LTD plan (employer pays 100%) that the employer ended up not adding a large number of employees to for several years...ugh!
The employer went ahead and added these folks with the carrier and then the fun began as the bill was very large. This was due to the fact that there were many employees who were not added for several years.
I tried to negotiate with the carrier to give the Group some kind of help on this. Carrier said to fill out EOIs and then they would consider adding the late employees without charging backpremiums.
We submitted the EOIs and the insurance company said no way, who told you to even do this as we would never consider doing this in the first place. Nice.
We then switched carriers to try to avoid paying any of the backpremiums. The carrier who we switched from said, "no way, the client has to pay backpremiums" even after the fact that the group was switched and had no claim activity. They said that had their been a claim, they (the carrier) would have been expected to pay (not sure I believe this) AND that 100% participation is 100% participation.
Is this correct? Can a carrier demand that backpremiums be paid on a Group that is no longer with them?
The employer went ahead and added these folks with the carrier and then the fun began as the bill was very large. This was due to the fact that there were many employees who were not added for several years.
I tried to negotiate with the carrier to give the Group some kind of help on this. Carrier said to fill out EOIs and then they would consider adding the late employees without charging backpremiums.
We submitted the EOIs and the insurance company said no way, who told you to even do this as we would never consider doing this in the first place. Nice.
We then switched carriers to try to avoid paying any of the backpremiums. The carrier who we switched from said, "no way, the client has to pay backpremiums" even after the fact that the group was switched and had no claim activity. They said that had their been a claim, they (the carrier) would have been expected to pay (not sure I believe this) AND that 100% participation is 100% participation.
Is this correct? Can a carrier demand that backpremiums be paid on a Group that is no longer with them?