Late Terminations

Applies to STATE employees only


For employees who are separating from the State, if the ePAF termination date is keyed after payroll has confirmed, Benefits Administration will collect the next month’s premium and it will NOT be refunded. The member will have the extra month of coverage since it is paid for and because they had a reasonable expectation that they will have coverage for that month.  Benefits Administration must give the employee this additional month of coverage under the ACA (Affordable Care Act).  The ACA says that if a person has paid for coverage then we cannot retroactively terminate their coverage unless the employee cancel requests the insurance.   If the member calls and wants to cancel coverage back to the original date (9/1 in the example above), submit a Zendesk ticket to Gena.  ABC’s were advised of this change during the August ABC meeting held here in the TN Tower.


Example:  Mr. Smith’s employment was terminated 8/5. His insurance should end 9/1. Since this was entered in Edison on 8/23 (after payroll has confirmed) his coverage will now be manually updated by the Billing team to terminate 10/1 instead of 9/1. 


You might say “but payroll doesn’t confirm until 8/24.”  Good catch.  However, we and DOHR are locked out as of 8/23 from keying and payroll is set to confirm on 8/24 so there is no way to stop pulling the deduction from Mr. Smith’s paycheck at this point.  In essence, “payroll has confirmed” at this point since we cannot make any changes (this is Billing terminology.)








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