Hi, this is Alan freezin, certified Employee Benefits specialist with another tip about getting the best value out of your employee benefit program. Most group benefit programs require you to have a high level of participation among your employees, or depending on the group size all of your employees. But a lot of times if you have 10 or 15 or 20 employees, well then you just need to have a high participation level. So that's good and works well. But here's where there could be a problem. If you have somebody who has opted out and then subsequently wants to come on to the plan, they're going to be regarded as a lead applicant.

Well, what does that mean? A lead applicant has to provide proof that they're in good health, they may or may not get the coverage at that point. So now it's okay if I guess if they've chosen not to be on the plan initially, that's a risk they face. But what if it was just an error or an omission? The employee forgot to hand in the paperwork or the employee or you forgot to follow up and add the person on. If they get treated as a lead applicant, then well then that causes some real problems because there's benefits that they should be eligible for that they can't get.

Because they can't qualify medically, there's something in their medical history that prevents them from getting the coverage. Basically, the industry uses the late applicant as you will to prevent insuring the burning building. I didn't want it First of all, whoo, now my health has changed now put me on the plan. So that's how normally the plans work. But there's another option and it's called where the benefits are going to be mandatory. If it's mandatory, it eliminates the risk of a late applicant.

So if somebody bill goes and he should have been on March one, but the application comes in in July, he's going to be enrolled, but he's going to be enrolled back to march and back premiums will be charged in contrast the other way with the latest quickest way is he should have been in on March, the application comes in in July. Well, then they assess bill at that time, ask him the medical medical questions get him to prove that he's in good health. So it's just a different tool, depending on what you're trying to achieve. I've had some clients, especially with temporary, temporary foreign worker type status, where they want it to be mandatory. They know there's a hassle and a time delay in getting the person on or getting their application in, I should say, but they want the person enrolled. No questions asked no medical evidence required.

So a little bit of a different approach that you can use, if that's more valuable for your business and your business objectives. If I can help, please do give me a look on LinkedIn or Google Plus, or contact me and I would gladly help you. Thank you much.