Benefit Strategies That Work
Due Date: 3/1
3/10 Notices are sent out to the group that there is a 10 day grace period.
Process: Every month has a drop dead "payment due by 5p.m." on the letter. Two days prior, the broker is faxed a letter to notify them that the group has not paid. Once the "drop dead date" has passed, the group termination letter will be sent to the group and about 5 - 7 days later member termination letters are sent. If the group misses the drop dead date, they are subject to a late fee of $250.00 for small group and $1000 for large groups as well as required to go on ACH and pay all back and current premiums. In order to reinstate the group, they must comply within 30 days. If they do not reinstate within 30 days, they will need to reapply.
ACH Also, if the ACH comes back NSF, they have two weeks to pay the premium for that month by check to avoid termination. The group WILL NOT receive a letter requesting to pay or be termed because they will have been notified by their bank.