Relating to a group health benefit plan policy or contract holder's obligation to pay premiums on behalf of an individual after the individual's eligibility for group coverage terminates.

Contracts

Critical Action: The statute uses the permissive term "may waive," not "shall waive."

• Master Group Policies: You must amend your group health contracts to convert this statutory permission into a contractual obligation. Insert language requiring the carrier to waive premiums for late-notice terminations if no covered services were rendered.
• TPA/Broker Agreements: Update service agreements to require your broker or TPA to automatically audit late terminations against claims data and file waiver requests on your behalf.

Hiring/Training

• HR & Benefits Staff: Train staff on the new "Conditional Payment" protocol. They must stop assuming late notice equals automatic liability.
• Accounts Payable: Instruct finance teams to flag premium invoices for terminated employees. Before payment, these must be cross-referenced with a "Proof of Utilization" request to the carrier.

Reporting & Record-Keeping

• Termination Audit Trail: You must maintain precise records distinguishing the Date of Eligibility Termination from the Date of Carrier Notification.
• Utilization Verification: Create a standard form letter or email template demanding a "Claims Incurred Report" for the specific individual and specific month in question to substantiate a waiver request.

Fees & Costs

• Cost Savings: This legislation creates a direct mechanism to reduce overhead caused by administrative error.
• No New Fees: There are no state-mandated fees associated with this change.