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Questions and Answers on Changes to Basic Employee Life Insurance for 2011
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Article Content
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| July 30, 2010 |
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What will change in PEBB’s group life insurance for the 2011 plan year?
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The $20,000 employee-basic life insurance benefit the Board initiated in 2009 with premium paid through settlement funds will end Dec. 31, 2010.
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Why is this $20,000 in PEBB-paid coverage ending?
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The Board voted to include the settlement funds in self-insurance reserves going forward.
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Why is the Board including these funds in the reserves?
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The reserves must hold enough money to cover risk in the self-insured health plans; the funds are needed in the reserves.
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Will this change affect the $5,000 in basic employee life insurance coverage?
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No; the change will not affect the $5,000 in basic employee life insurance coverage; agencies pay the premium for this coverage.
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Can I replace the $20,000 in PEBB-paid coverage as guarantee issue through optional employee life insurance?
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No; optional employee life insurance is available as guarantee issue only within 60 days of when you first become eligible for benefits.
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When can I increase my optional employee life insurance coverage?
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You can add optional employee life insurance coverage during Open Enrollment or midyear if you experience a qualified plan-change event. Additional coverage is not guarantee issue; it requires review of your medical history by the insurance company.
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Why can’t I increase coverage in the optional employee life insurance as guarantee issue?
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Opening up this policy without approval of medical histories increases risk for the pool of members who purchased coverage based on approval of their medical history.
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Didn’t the insurance company offer guarantee issue for optional employee life before?
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During Open Enrollment in 2008, the company opened up optional employee life insurance to give all PEBB members a one-time opportunity to purchase an initial $40,000 in coverage or to add $20,000 to existing coverage as guarantee issue beginning 2009. This was a one-time offer.
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