All Retail members are direct billed, and some Corporate members are direct billed.
Most direct bill members pay by EFT or via direct premium notices through the mail, and by credit card.
Quarterly, semi-annual, and annual paper bills are permitted.
Monthly paper bills are not usually permitted, but exceptions have been given in the past to Corporate members who made a special request for monthly paper bills.
EFT billing is performed monthly, quarterly, semi-annually, or annually. Debits occur on/around the 5th of the month in which premium is due. An authorization form is required. Members may authorize EFT from checking or savings.
Members must notify us by calling or written request to change billing modes.
Additionally, we have a few insureds who pay us through a government allotment. These insureds will appear to be direct premium notice or list bill in InsPro. This option is not available to new insureds going forward.
Paying by Allotment
Some insureds qualify to receive a monthly payment from the government. This is called an “allotment.” The allotment is usually direct deposited into the person’s bank account once per month.
GOVERNMENT ALLOTMENT:
Some of these insureds decide to pay us by allotment. This means that the insured has instructed the government to send us a certain dollar amount from each allotment to use toward making premium payments. We receive the designated amount directly from the government and apply it to the insured’s record as a premium payment.
Unlike EFT, we do not have any control over how much money is sent to us. It is up to the insured to make sure that the premium contributions from the allotment are sufficient to cover the amount due. For example, if the insured has a rate increase due to age, the allotment contribution would need to be adjusted. To make adjustments, the insured must contact the government office handling his/her allotment.
If someone is significantly overpaid or underpaid, we will send a refund or a notice asking for additional premium. The problem is that many insureds who pay by allotment are in the habit of ignoring our bills. They do not always realize when the rates have changed.
We would prefer that these insureds switch to EFT. If you have a caller who wishes to switch to EFT, please supply him/her with the authorization form and instruct him/her to contact the allotment office to discontinue payments to our company. We cannot stop the allotment payment … only the insured can make that change.
When someone pays by allotment, the person will be listed as “direct premium notice” or “list bill.” Sometimes, looking at the batch/sequence numbers on the payment postings in Financial History will help you confirm that the payments are arriving by allotment. See P000629222 as an example insured paying by allotment.
List Bill (Salary Deductions), Direct Bill, or EFT.
When an insured switches an employer group we will need to check a few items.
First check to see if the notes have been added to Inspro to terminate the current ER group. It should say something like.
Terminate due to ER rule 01/01/2010.
Then ask the insured who the new employer group will be.
Using the OEP manual determine how the new ER group enrolls. For example.
If the new ER group is file feed to enroll, you will need to check Imagenow to determine if we have the new enrollment request from the new ER group.
If we do not have the new enrollment request. Please reassure the customer that this process can take up to 90 business days. Please encourage the insured to seek all medical needs required.
Remember, the new effective date is determined by the ER group.
The current Inspro policy will not lapse because the the ER rule.