September can be a busy time of year for plan members with school-age children—and among those with kids going to college or university, by now it’s a safe bet that more than a few have forgotten to check in with their group insurance provider about ongoing coverage.
Plan sponsors need to nudge their plan members more than once to annually update the coverage status of children completing post-secondary education, says Chris Gory, Employee Benefits Advisor, Orchard Benefits, Toronto. He suggests sponsors send members an email near the end of August and again in September, making it clear that the onus is on them. “Parents need to get that information to their carrier.”
Otherwise, plan members learn the hard way when their child’s claim is denied coverage, a situation that can be especially stressful for students far from home.
Plan members should also be urged to know the details of their coverage, starting with age limitations. “Plans will generally cover kids up until age 19, the bulk of them until age 21 and then a few will cover them up until age 25 or 26—but they have to be in college or university full time,” says Gory.
As part of their communication, plan sponsors can use a few quick points to walk the plan member through the process of updating their insurer. “Sometimes insurers allow plan members to update the information on their site for plan members, sometimes they require a form, and often insurance companies just need a copy of a receipt of a student ID card,” says Gory.
Plan sponsors should also recommend to plan members that they indicate coverage is required up to August 30th, rather than the usual end date in May, in case their child decides to attend summer school.
If a child has been denied coverage, a quick call or email to the carrier, along with proof of school attendance, can often quickly set things right, says Gory.
He adds that for parents with kids who plan on continuing their studies beyond age 25, new offerings have emerged that will cover a student until age 30. “There are a few niche products out there—which work if a student is working on their Masters or wants to be a doctor,” he says.