Student Verification Deadline Approaching

This is the time of year that insurance companies require notification of dependent student status in order to properly adjust claims regarding eligible dependents.  Most insurance contracts allow dependent children to remain insured until age 19, or until age 25 if the dependent is a full-time student.  To avoid claims problems, you should make a point to update your eligibility with your insurance carrier at this time if you have not already done so.

If you have a dependent that is above the age of 19 and is no longer a full-time student, you are required to notify your carrier to drop this person from your coverage.  If this dependent is out of school and cannot be covered under an employer’s insurance plan, COBRA coverage can be purchased.

Some carriers have already extended their student verification deadlines in order to accommodate the significant number of unemployed graduates.  CIGNA Healthcare, for example, has extended their deadline from Sept. 30 to Oct. 31, 2005.  We encourage you to contact your insurance carrier to inquire not only about deadline extensions, but also about other exceptions.

For further questions, please contact us at 919-403-1986.

Please note: You may wish to copy the above text, modify it based upon group-specific eligibility, and re-distribute it to your employees.

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Important Notice: Hill, Chesson & Woody does not engage in the practice of law, accounting, or medicine. Therefore, the contents of this communication should not be regarded as a substitute for legal, tax, or medical advice.

October 12, 2005

Hill, Chesson & Woody Employee Benefit Services

194 Finley Golf Course Rd, Suite 200,
Chapel Hill, NC 27517
Phone: 919.403.1986
Fax: 919.913.0237

www.hcwbenefits.com