I have a group ancillary LTD policyholder (100% employer paid) that allows new hires to enroll only on the plan anniversary. The inforce carrier allows this to occur but I wonder about the discriminatory aspect. In other words, if the group has a June 1 effective/renewal date and they hire someone May 15; the employee would go on the plan about 15-days later. At the same time if they hired someone on June 2, that employee would have to wait almost a year before being eligible for the same benefit. This does not sound fair and thus the discrimination question.
Can anyone provide me with feedback or guidance here that I can provide the client?
David M. Block, CLTC
President Insurance Specialties, Inc. PO Box 1809 Candler, NC 28715-1809
800.358.8844 toll free 828-667-1119 local 828-667-2229 fax www.insurance-specialties.com
I have a group ancillary LTD policyholder (100% employer paid) that allows new hires to enroll only on the plan anniversary. The inforce carrier allows this to occur but I wonder about the discriminatory aspect. In other words, if the group has a June 1 effective/renewal date and they hire someone May 15; the employee would go on the plan about 15-days later. At the same time if they hired someone on June 2, that employee would have to wait almost a year before being eligible for the same benefit. This does not sound fair and thus the discrimination question. Can anyone provide me with feedback or guidance here that I can provide the client? David M. Block, CLTC President Insurance Specialties, Inc. PO Box 1809 Candler, NC 28715-1809 800.358.8844 toll free 828-667-1119 local 828-667-2229 fax www.insurance-specialties.com