Qualifying Life Event

Understanding Qualifying Life Events (QLEs) is crucial to make the most of the  Special Enrolment Period (SEP) for Employer-Sponsored Health Insurance Policies. It helps ensure your employees have the coverage they need when life takes an unexpected turn.

What is a Qualifying Life Event (for Health Insurance)?

A Qualifying Life Event (QLE) is a significant life change that allows individuals to enrol or make changes to their health insurance outside of the regular open enrolment period. These events recognise that life is unpredictable, and health insurance needs may shift due to circumstances beyond our control.

Types of Qualifying Life Events

The types of qualifying life events vary depending on the law, policies of the company, and policies of the health insurance provider. In most cases, the following count as QLEs:

Loss of Other Health Coverage

If an employee loses coverage from another source, such as a spouse's plan, it is considered a QLE to allow them to enrol in their employer-sponsored health insurance. The same is true for individuals reaching a certain age that makes them ineligible to be their parents’ dependents. 

Changes in Residence

If an individual relocates to a new area that is outside their current health insurance plan's coverage network, it can be considered a Qualifying Life Event. 

Changes in Family Status

This category includes events such as marriage, divorce, the birth of a child, or adoption. Any significant alteration in family composition may allow individuals to adjust their health insurance coverage accordingly (including death of a loved one).

Changes in Eligibility

Depending on the policies, changes in the employee’s income and being eligible for a lower health insurance premium, may also be considered as QLEs. 

Other Circumstances That May Allow For Special Enrolment Period

On top of the aforementioned QLEs, there are also circumstances that may allow employees to take advantage of the special enrolment period. Examples include a natural disaster, unexpected hospitalisation, gaining or becoming a dependent, and experiencing abuse. 

How Long is the Special Enrollment Period?

The Special Enrollment Period typically lasts for 30 to 60 days from the date of the qualifying event. This window provides employees the opportunity to reassess their health insurance needs and make necessary changes to their coverage.

What Conditions/Events Do Not Count as Qualifying Life Events?

While QLEs are designed to accommodate significant life changes, not all events or conditions are considered qualifying. Some situations that do not warrant a Special Enrolment Period include:

• Getting pregnant 
• Getting a new job/Changing roles within the organisation
• Employee’s spouse getting a new job if it did not result in the employee losing a health coverage

Qualifying Life Event for Employer-Sponsored Health Insurance - What Documents Do You Need?

To enrol or initiate changes in the employee’s health insurance after a qualifying life event, they may need to provide certain documents that should be dated and signed. Here are some examples of what might be required:

• Proof of the Qualifying Event: Employees should provide documentation verifying the occurrence of the QLE, such as a marriage certificate, birth certificate of their child, or termination notice.
• Proof of Loss of Other Coverage: In the case of losing coverage from another source, employees must furnish documents confirming the termination of the previous health insurance plan.
• Residency Documentation: For relocation-based QLEs, employees should submit proof of their new address, such as utility bills or a lease agreement.

As employers, it’s important to help employees understand the significance of QLEs to empower them to navigate the complexities of healthcare, ensuring that they can adapt their coverage to align with the evolving circumstances of life.