One area that can create significant headaches during benefits data migration is correctly establishing employees’ approved coverage amounts for life and disability benefits and Evidence of Insurability (EOI) rules in the new system. Why is this so important and what should you consider to ensure a seamless transition?
Let’s clarify some terms before we begin.
Guarantee Issue (GI) is the amount of life or disability coverage that insurance companies allow employees to elect during certain enrollment periods without submitting Evidence of Insurability (EOI). EOI is a process that requires the employee, or dependent, to provide medical evidence of good health to the insurer if they elect to enroll outside of an approved event, or if they elect an amount in excess of the GI. The insurer will then determine if the requested amount will be approved or declined.
How to Avoid Data and EOI Election Issues
In consideration of a company’s set GI limits and EOI rules, there are three important elements to think about during the data migration process.
First, establishing the correct “in-force” amount for each employee whether it is the GI amount, or previously approved amount in excess of the GI.
Second, reconciling the converted amounts with the insurance company to ensure there is agreement, especially for amounts in excess of the GI. A few typical issues to watch out for include:
- The converted data shows a different amount compared to the insurer.
- The insurer has no record of a particular employee or group of employees.
- Grandfathered amounts from a prior insurer were not correctly established with the current policy holder.
Third, validating correct configuration of the EOI rules in the new system to ensure:
- Participants are not prompted to resubmit EOI for previously approved coverage,
- The system correctly prompts for coverage increases per the plan rules, and
- Payroll deductions are being accurately calculated for the approved insurance amounts.
Why Manage EOI Issues During Migration?
Most carriers are willing to rectify EOI election issues if caught early. Correcting these errors requires proper communications with the carrier and may need research in legacy systems, if access is still available. Here are steps you can take to avoid EOI issues:
- Review and reconcile the coverage data in the existing HRIS system against the carrier data prior to extracting the data for migration. The earlier you can start this process, the better.
- Audit your bills monthly! It is easy to catch and correct elections and premium mismatches each month if you have a billing review process in place.
- If you find a mismatch, work with the carrier to rectify.
The process of getting insurance coverage amounts corrected can be complicated. You also want to avoid coverage issues if a claim is ever submitted. HCM Tech Advisory recommends taking the opportunity during the data migration process to reconcile and clean any data issues. This helps to ensure the new system is positioned for success and allows for a smooth and seamless experience for employees and the ongoing HR team.
HCM Tech Advisory has the expertise and experience to help answer your questions related to benefits and HR data or provide a deeper dive into best practices for migrating data into new HRIS systems. To learn more and for a complimentary consulting review, contact us at info@hcmtechadvisory.com.
