HR Fast Facts: Why Must Employees Provide a Reason for Waiving Medical Coverage?
If an employee needs to waive medical coverage, find out how it can impact your company.
Employees who choose to decline one or more lines of coverage offered by a company for themselves or their dependents must sign a waiver and provide a reason for declining.
The waiver that the employee will be required to sign can include the following:
- Name
- Social Security number
- Employment date
- Who the employee is waiving coverage for, and why
- Confirmation that the only way for employees to enroll themselves or a dependent prior to the company’s next open enrollment period (up to 12 months) is through a qualifying life event
These reasons directly affect the company’s ability to qualify for insurance coverage, and should be accurately reported.
