Switching Group Health Insurance Providers:

If you have decided to switch to a new group health insurance provider, there are several steps that you will need to take to ensure that the transition is a smooth one. Here are some tips on how you can make the most of your switch, while cutting down on stress and confusion.

1. Inform your employees of your intention to switch. Your employees will need to know what is going on and how this switch will affect not only their benefits but their health care costs. If they are going to be paying more for their monthly premiums, they may not be very pleased with the switch. You will need to hold a meeting to discuss these changes and the new benefits that they will be getting by making the switch. By making the switch positive, you can cut down on discontent in your workforce.

2. Begin to look for a new group health plan. If you have not done so already, or your employees have requested that you find a new group health plan, you will need to begin shopping around. The Internet is a great place to start and can offer you many more alternatives that you would normally find in your own area. If you are staying with the same insurance company and switching to a new plan, you will need to be aware of any exclusion periods or any potential problems that may arise because of the switch ahead of time.

3. Read your old policy carefully. Before finalizing your decision to switch, it is very important to read your old policy thoroughly. You will need to be aware of any potential penalties that you may need to pay, or procedures that will need to be followed before making your switch. Taking the time to do this can greatly cut down on future problems. If you do not fully understand the implications, you will need to discuss your concerns with your insurance representative. If you are moving to a new company, this may be difficult, and you may not get a completely straight answer. Do your best to find out all you can on your own on how this switch will affect everyone involved.

4. Choose your new plan carefully. If your employees were not happy with your old group health plan, you will need to make sure that this new plan will suit their needs. If they have specific requests, such as prescription drug coverage or an HSA eligible group health plan, make sure that these needs will be met. You don’t need to continue hopping around from plan to plan.

5. Find out about exclusions. If any of your employees have a pre-existing condition, or if the insurance company requires an exclusion period for all new group health plan enrollees, your employees will need to be aware of this. This can greatly affect their health care options and may leave them in a lurch if they are not prepared. Talk with your new insurance representative to make sure that you are completely informed on any and all exclusions.

6. Purchase your new policy and wait for it to become active. Many insurance companies have a 30 day waiting period before a plan is activated, or they may request health exams for your employees. You will need to make sure that all necessary guidelines have been met and that your new coverage is now active before taking your final step.

7. Cancel your old policy. Once you have determined that everything is in place with your new group health plan, you can cancel the policy. You may need to pay a penalty, or you may have some overlap with premium payments, but in the end, if the switch is beneficial, these extra costs will be worth it.


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