We always mention how important it is to add your employees well within your company's waiting period, but did you know it's equally as important to add their spouses and all other dependents on the plan at the same time?
Dependents should be added along with each employee even if they have coverage through their own employer. We are able to opt dependents out of the plan if they have alternative coverage.
When we add a spouse but opt them out of coverage the employee will pay a single rate, however, the employee's family can be made active at a later date without penalties.
If we do not add spouses and other dependents on to the plan at the time of enrolment, they will be treated as late entrants and will have to complete a statement of health form; they will be subject to exclusion and/or denial based on their medical history. Additionally, they will only be allotted $250 worth of dental coverage in the first 12 months.
It is imperative that you, as a plan administrator, remind each of your employees to add all dependents to their application forms. Please direct them to check off the Opt-Out boxes at the bottom of page one if they choose to keep their dependents inactive.