When an employee experiences a life event such as the birth or adoption of a baby or a marriage, chances are they’re not immediately thinking about how it impacts their insurance. However, many qualifying life events warrant different insurance choices and shouldn’t be forgotten. Read on for what qualifying events are and how HR should handle benefits administration when employees encounter qualifying life events.
A qualifying life event is any change to an individual’s circumstances that allows them to make adjustments to their benefits despite the time of the year. These include losses in health coverage, changes in the household, changes in residence, and others.
Typically, employees are only eligible to make adjustments during the company’s open enrollment period, which often (but not always) takes place towards the end of the year.
It’s imperative that employers have the appropriate processes in place to properly administer benefits when an employee has a qualifying life event. HR can communicate the process to employees when they’re onboarding, but having the steps spelled out in a Culture Guide is even more helpful so that employees can reference the information whenever qualifying life events happen.
Are employees expected to reach out to HR first when they encounter a qualifying life event? Or does HR keep track and reach out to remind employees to make adjustments to their benefits? It’s important for everyone to be on the same page so that electing benefits during a qualifying event isn’t overlooked—especially since the consequences can mean that an employee or family member is without insurance.
Utilizing a human resources information system (HRIS) is key to staying organized. A robust platform like BerniePortal empowers HR managers to keep track of appropriate employment documents—such as W-4s, I-9s, and other new hire information—and helps keep you compliant with legal standards and regulations.
Not only that, but an HRIS empowers current employees to be able to make their own changes without assistance needed from HR managers. By presenting benefits options on a single, intuitive system, you’re making everyone’s lives easier. This is more convenient for each person involved, and you’ll have more time on your hands to help shape the culture of your team.
According to the Federal government, there are four primary types of qualifying events:
You can stay informed, educated, and up-to-date with important HR topics using BerniePortal’s comprehensive resources: