HR Fast Facts: Why Must Employees Provide a Reason for Waiving Medical Coverage?

Employees who choose to decline one or more lines of coverage offered by a company for themselves or their dependents must sign a waiver and provide a reason for declining. The waiver that the employee will be required to sign can include the following:

• Name
• Social Security number
• Employment date
• Who the employee is waiving coverage for, and why
• Confirmation that the only way for employees to enroll themselves or a dependent prior to the company's next open enrollment period (up to 12 months) is through a qualifying life event

These reasons directly affect the company's ability to qualify for insurance coverage, and should be accurately reported.