Insurance Termination Policy for State Employees

Applies to: State of Tennessee employees only

Key Information

If an employee separates from State service and the ePAF termination date is entered after payroll has confirmed, the following will apply:

• Benefits Administration will collect the next month’s premium.
• The premium will not be refunded.
• The employee will receive an additional month of coverage.

Why This Happens

Under the Affordable Care Act (ACA):

• If an employee has paid for coverage, their insurance cannot be retroactively canceled unless they request cancellation.
• This ensures the employee receives coverage they reasonably expected based on payment.

What to Do If the Employee Wants to Cancel Coverage

If the employee contacts you and requests to cancel coverage back to the original termination date, you must:

• Submit a Zendesk ticket to the Billing team.
• Include the employee’s name, ID, and the requested cancellation date.

Example Scenario

• Employee Name: Mr. Smith
• Termination Date: August 5
• Expected Coverage End Date: September 1
• ePAF Entered in Edison: August 25 (after payroll confirmation)
• Result:
  • Coverage will be updated to end on October 1 instead of September 1.
  • This is because the September premium was already collected.