HR Professional: Administrative Guide for Group Life and Disability Benefits

To download a printable PDF of this document, click here.

Guide for group benefits

Guide overview

This guide provides an explanation of the enrollment, billing, claims, and policy service procedures for Humana Specialty Benefits and should be used as a reference guide only. Information in this guide is subject to change at any time at the discretion of Humana Specialty Benefits.

No information in this guide will supersede the terms and conditions of the Master Policy/Certificate or is to take the place of any direction provided by authorized employees of Humana. The information contained in this guide may vary from group to group. Please be sure to review your Master Policy/Certificate when quoting specific policies and procedures. This guide is provided solely to offer an administrative guideline for our clients.

Your account executive

Throughout your relationship with Humana Specialty Benefits, your account executive is available to help you with any issues or questions.

The call center

When your employees enroll in a policy from Humana Specialty Benefits, they not only receive a quality product but quality service as well. Each policyholder can receive assistance from your account executive or from our Customer Service Call Center.

The call center has a dedicated team of specialists qualified to handle all inquiries concerning policyholder service and claims.

The call center’s hours of operation are:

Monday 8 a.m. to 5:30 p.m. Eastern time
Tuesday 9 a.m. to 5:30 p.m. Eastern time
Wednesday – Friday 8 a.m. to 5:30 p.m. Eastern time

You may also contact our call center at kmgcustomerservice@humana.com.

All Customer Care specialists have access to information concerning claim status, billing procedures, and payments. Humana Specialty Benefits also can provide an interpreter for any language.

Contacts

Customer service (for groups of more than 100 members) 1-866-934-6697
Customer service (for groups with less than 100 members) 1-800-584-4214
Premium payment address Humana Inc.
c/o Wachovia Bank
P.O. Box 75117
Charlotte, NC 28275-0117
Medical Underwriting mailing address Humana Inc
Attention: Medical Underwriting
Post Office Box 7777
Lancaster, SC 29721-7777
New Business mailing address

Humana Inc
Attention: New Business
PO Box 7777
Lancaster, SC 29721-7777

If sending via overnight mail:
Humana Inc.
Attn: New Business
301 S. Main St.
Lancaster, SC 29720

Life claims mailing address Humana Inc.
PO Box 1000
Lancaster, SC 29721-1000
Short-term disability/Long-term disability claims mailing address, and contact information

Humana Inc.
Attention: Group Claims
PO Box 2993
Hartford, CT 06104-2993

Customer Service: 1-800-957-7121
Fax: 1-860-392-3672

Premium reporting - list bill

List bill is an invoice detailing coverage at an individual level.

Bills are generated online through the Electronic Bill application. The group contact receives an e-mail notification each billing cycle that the group’s bill is ready to be viewed. Log-in information will be provided before receipt of first bill.

Remittance

Payment can be remitted by*:

  • Automated Clearing House (ACH)**
  • Binder check
  • Electronic Fund Transfer (EFT)

* E-mail a copy of the list bill to kmgpremiumremit@humana.com regardless of method of payment.

**A Payment Administration Form is required when remitting via Automated Clearing House (ACH) transaction.

If the employer does not wish to remit by ACH transaction, a deposit check must be submitted instead of this form. To determine the amount of the deposit check for a new group, use the following calculation:

Total number of lives or ______________
Volume ______________
Multiplied by rate on proposal ______________
Deposit check amount ______________

If Humana is taking over existing benefits, submit an amount equal to the last month’s payment with the prior carrier. Mail the check to:

Humana Inc.
c/o Wachovia Bank
PO Box 75117
Charlotte, NC 28275- 0117

If sending payment via overnight mail, send to:

Wachovia Bank, N.A.
Humana Specialty Benefits
PO Box 75117
1525 West W.T. Harris Blvd – 2C2
Charlotte, NC 28262

        

Ongoing billing information

 

Premiums are due on the premium due date indicated on the list bill, and must be received before the end of the grace period to maintain insurance in force.

Bills are generated on the 15th of each month.

The next month’s billing statement will reflect terminations and adjustments received before the first of the month.

For additions, when a newly hired employee has met the eligibility period (waiting period) and becomes eligible for coverage, notify us at kmgcoreunit@humana.com.

Please pay the bill “as billed.” The next billing will reflect any adjustments.

For more information refer to Kanawha.com/billing_tutorial/group_tutorial_demo.aspx

Premium reporting - self bill

Groups with more than 100 employees have the option of self billing. Bills are generated online through the Electronic Bill application. This feature can be used to enter volumes on a monthly basis, if desired, for record purposes. The group contact receives an e-mail notification each billing cycle that the group’s bill is ready to be viewed. Log-in information will be provided for set-up.

Remittance

Payment can be remitted*:

  • Automated Clearing House (ACH)**
  • Electronic Fund Transfer (EFT)

* E-mail a copy of the list bill to kmgpremiumremit@humana.com regardless of method of payment.

**A Payment Administration Form is required when remitting via Automated Clearing House (ACH) transaction.

If the employer does not wish to remit by ACH transaction, a deposit check must be submitted instead of this form. To determine the amount of the deposit check for a new group, use the following calculation:

Life:

Volume divide by 1,000 ______________
Multiplied by rate on proposal ______________
Deposit check amount ______________

Short-term disability (STD):

Total volume divided by 10
______________
Multiplied by rate on proposal divided by 10 ______________
Deposit check amount ______________

Long-term disability (LTD):

Total volume divided by 100
______________
Multiply by rate on proposal ______________
Deposit check amount ______________

If Humana is taking over existing benefits, submit an amount equal to the last month’s payment with the prior carrier. Mail the check to::

Humana Inc.
c/o Wachovia Bank
PO Box 75117
Charlotte, NC 28275- 0117

If sending payment via overnight mail, send to:

Wachovia Bank, NA
Humana Specialty Benefits
PO Box 75117
1525 West W.T. Harris Blvd – 2C2
Charlotte, NC 28262

Ongoing billing information

 

Premiums are due and payable on the premium due date indicated in the Master Policy, and must be received before the end of the grace period to maintain insurance in force.

Premiums for new employees becoming effective during a given billing month (except on the premium due date) are waived. Premiums for terminated employees are due for the month in which they terminate (except if they terminate on the premium due date). It is assumed that additions and terminations will tend to offset each other during a policy year.

  • Remittance forms are permitted if they include the following information:
    • Policyholder name
    • Group number
    • Account number
    • Premium due month
    • Coverages
    • Number of lives/volume
    • Premium rate
    • Adjustments
    • Gross premium due
    • Compensation (if applicable)
    • Calculation of check amount
    • Send Premium Remit Form to kmgpremiumremit@humana.com.

Premium remittance form (self-billed)

When using the Remittance Form (1476), follow these steps:

Policyholder Name This field will be preprinted by Humana
Group Number This field will be preprinted but is the same as your policy number
Account Number This field will be 001 unless you have requested different accounts for various reasons
Premium Due Month Complete the field with month and year for which you are remitting a premium
Coverage This column will be preprinted with the coverages that are in-force with Humana
Lives Complete this column with the number of employees/spouses/dependent units that held the coverage as of the Premium Due Month listed above
Volume Complete this column with total insurance volume for employees/spouses that held the coverage as of the Premium Due Month listed above
Rate This column will be preprinted with the rates that are applicable for the policy period. If not pre-printed, refer to your Schedule of Coverage
Gross Monthly Premium

Multiply the applicable premium rate times the volume/employee amount for each type of coverage to determine premium for current period:

  • Coverages with Rate by Volume – multiply the total volume times the rate (see policy for correct rate and division factor – i.e., per 1,000 of coverage)
  • Coverages with Rate per Employee – multiply the total number of employees times the rate (see policy for correct rate)
Adjustments Indicate additions, increases, terminations, and decreases in coverages for a previous month that were not reported on a previous remittance form; please attach an explanation of all adjustments for our records
Total Monthly Premium Gross Monthly Premium (+ or –) any adjustments
Totals Sum of the premium for Gross Monthly Premium, Adjustments and Total Monthly Premium
Less Commissions If you are remitting premium net of commissions, list the commission rate and total commissions
Check Amount Total Monthly Premium less the commission amount
Prepared by Sign Remittance Form
Date Date Remittance Form

Double coverage for employees

When an employee and domestic partner are actively employed at the same group, the employee and dependent child(ren) can only be covered under one policy. For example, the employee is covered only under his or her policy, or is under the domestic partner’s policy but not both.

Newly hired employees

New employees must complete the appropriate enrollment form for themselves, spouses, or dependents (see list of forms for correct form number). An employee becomes eligible for coverage when he or she becomes a member of an eligible class and completes the eligibility requirements shown in the Master Policy. Employees have 31 days from date of eligibility (waiting period) to apply for coverage.

Every new employee who has met eligibility requirements is to be offered insurance coverage. This is accomplished by having the newly eligible employee complete and sign the enrollment form.

If an employee declines insurance, a Waiver of Group Insurance Form (1504) must be completed, signed, and retained in the employee’s record.

If an employee, spouse, or dependent is eligible for and wishes to enroll for an amount of insurance greater than the guarantee issue limit stated in the policy, an Evidence of Insurability (EOI) Form (1474) must be completed.

Please review all enrollment forms and evidence of insurability forms to ensure the proper completion. Submit all forms to our
New Business department:

Humana Inc.
Attention: New Business
PO Box 7777
Lancaster, SC 29721-7777

If sending via overnight mail:
Humana Inc.
Attn: New Business
301 S. Main St.
Lancaster, SC 29720

Evidence of insurability requirements

  • Required when an employee or spouse is applying for coverage in excess of guarantee issue limit
  • Required when an employee or spouse wishes to increase their coverage outside the enrollment period
  • Required for employee or spouse who is applying for coverage after the eligibility period
  • Required for employee or spouse who is reapplying after one individual cancels coverage

Increase life coverage amounts at open enrollment

Subject to the limits in the Master Policy, any employee, spouse, or dependent can increase the coverage amount during open enrollment (if your group offers this) or anytime during the policy year if an EOI Form is submitted.

To increase coverage amount:

  1. The employee should complete the Request for Change Form (1475)
  2. If the employee is applying for an amount of insurance greater than the guarantee issue limit stated in the policy, an EOI form (form 1474) along with the Request for Change Form (1475) must be completed

Submit both forms to New Business:

Humana Inc.
Attention: New Business
PO Box 7777
Lancaster, SC 29721-7777

If sending via overnight mail:
Humana Inc.
Attn: New Business
301 S. Main St.
Lancaster, SC 29720

Late entrants - applying for coverage outside enrollment period

New employees must enroll themselves, spouses, and dependents for coverage within 31 days after the eligibility date in the Master Policy. If the employee/spouse/dependent does not enroll in that period, the EOI Form (1474) must be completed along with the appropriate enrollment form (see list of forms for form number). Submit both forms to New Business for approval:

Humana Inc.
Attention: New Business
PO Box 7777
Lancaster, SC 29721-7777

If sending via overnight mail:
Humana Inc.
Attn: New Business
301 S. Main St.
Lancaster, SC 29720

Effective dates of individual benefits

  • Benefits up to the guarantee issue limit are effective on the date of eligibility the employee is actively at work
  • If an employee must submit an EOI form, the coverage will become effective on the date indicated in the Master Policy if that employee is actively at work
  • If an employee is not actively at work on the date the benefits become effective, benefits do not become effective until the first day that employee is actively at work

Certificates

Certificates outlining the applicable group insurance coverages must be delivered to each newly insured employee. A supply of these certificates should be retained by the employer’s benefits department. Additional certificates can be obtained from customer service. See page four of this document for details.

Changes in benefits

If an employee becomes eligible for an increased amount of insurance due to transferring from one class to another or because of a change in benefits, the employee must complete and sign the Request for Change Form (1475). Retroactive premium adjustments will appear on the next bill.

An EOI Form (1474) must be completed for an insured employee who, as a result of a change, becomes eligible for an amount of insurance greater than the guarantee issue limit stated in the policy.

Submit both forms to New Business for approval:

Humana Inc.
Attention: New Business
PO Box 7777
Lancaster, SC 29721-7777

If sending via overnight mail:
Humana Inc.
Attn: New Business
301 S. Main St.
Lancaster, SC 29720

Termination of benefits (life only)

An employee’s insurance will automatically terminate as specified in the policy. If an employee terminates employment, advise that he or she may have the right to continue coverage, and provide the Notice of Conversion Right Form (5258).

An employee who wants to terminate coverage must complete the Request for Change Form (1475). Submit the form to kmgcoreunit@humana.com. Retroactive premium adjustments will appear on the next bill.

Change smoker classification

If any employee, spouse, or dependent wishes to change from a tobacco user rate to a non-tobacco user rate, the employee must complete a Request for Change Form (1475) indicating that he or she has not used any form of tobacco in the past 12 months. Mail the Request for Change Form to medical underwriting for approval:

Humana Inc.
Attention: Medical Underwriting
Post Office Box 7777
Lancaster, SC 29721-7777

We will notify a paramedical company to contact the employee for a urine specimen. When the results of the urine specimen have been received, the employer and employee will be notified by letter of the decision.

Personal changes

Request for Change Form (1475) must be completed for any personal changes (i.e., name, address, beneficiary). E-mail the form to kmgcoreunit@humana.com for recording. The employee should keep a copy of the form.

Conversions (life insurance only)

The conversion provision of the Master Policy provides employees terminated voluntarily with the right to apply for a personal whole life insurance policy to replace group life insurance. A completed Notice of Conversion Right Form (5258) must be given to all eligible terminating employees, spouses, or dependents, or sent to their last known address. If conversion is desired, the employee must submit the notice within 31 days of termination. When Humana receives the notice, an application package will be sent to the applicant. Notice should be sent to New Business:

Humana Inc.
Attention: New Business
PO Box 7777
Lancaster, SC 29721-7777

If sending via overnight mail:
Humana Inc.
Attn: New Business
301 S. Main St.
Lancaster, SC 29720

Domestic partners

An employee who wishes to enroll a domestic partner must complete the Affidavit of Domestic Partnership form (5841). The original of this form must be sent to New Business for recording. A copy should be given to the employee.

Humana Inc.
Attention: New Business
PO Box 7777
Lancaster, SC 29721-7777

If sending via overnight mail:
Humana Inc.
Attn: New Business
301 S. Main St.
Lancaster, SC 29720

How is portability handled? (supplemental life only)

The portability benefit will allow an employee to retain supplemental life insurance benefits after leaving or retiring from employment. A Group Term Life Insurance Portability Election Form (1488) is required within 31 days after termination of benefits.

The employer must mail the form to the terminating employee. Included in this mailing should be a copy of the employee’s original life insurance enrollment form, along with documentation of any benefit or beneficiary changes that occurred during the original benefit period.

If portability benefits are desired, the employee will mail the appropriate application and documentation to Humana Specialty Benefits.

Humana Inc.
PO Box 5000
Lancaster, SC 29721

If the employer decides to terminate its group term life insurance Master Contract with Humana*, coverage for individuals who have ported their coverage also will be terminated.

*Products underwritten by Kanawha Insurance Company.

Life claims

For death, accidental death and dismemberment (AD&D), or terminal illness (accelerated life benefit) benefits, an insured must complete a Claim Statement Form (5114). Please refer to the form for documentation needed for the specific benefit requested.

If a loss of a limb or eyesight is a result of an accident and this loss occurs within 90 days of the accident, a Proof of Disability Form (5088) also must be completed.

In the event of terminal illness, medical records diagnosing the terminal illness also must be provided.

Extension of employee life insurance during total disability (waiver of premium)

If an insured employee becomes totally disabled before age 60, the Extended Death Benefit may apply. For determination, the Proof of Disability Form (5088) must be completed by the employer.

Accidental Death and Dismemberment benefits

(If your plan contains these benefits.)

Paralysis Benefit – In the event of paralysis resulting from a covered accident, complete and submit the Claim Statement Form (5114). Indicate the benefit for which claim is being made along with the accident report and all medical records diagnosing and documenting the paralysis and cause.

Seat Belt Benefit – In the event of a covered accidental death resulting from an automobile accident and the insured was wearing a seat belt, complete and submit the Claim Statement Form (5114). Indicate the benefit for which claim is being made along with a certified copy of the death certificate and police report.

Seat Belt and Airbag Benefit – In the event of a covered accidental death resulting from an automobile accident and the insured was wearing a seat belt and the air bag deploys, complete and submit the Claim Statement Form (5114). Indicate the benefit for which claim is being made along with a certified copy of the death certificate and the police report. If the police report does not indicate if the air bag deployed, a statement from the body shop or towing company is required.

Education and Training – In the event that an insured dies as a result of a covered accidental death, and the deceased is survived by a child who is or becomes a full-time student within 365 days of the date of death, complete and submit the Claim Statement Form (5114). Indicate the benefit for which the claim is being made along with a certified copy of the death certificate, the accident report, and a copy of a school transcript verifying full-time student status.

Licensed Day Care – In the event that an insured dies as a result of a covered accidental death and the deceased is survived by a child who is or becomes enrolled in a licensed day care within the time specified in the policy, complete and submit the Claim Statement Form (5114). Indicate the benefit for which claim is being made along with a certified copy of the death certificate, police report, canceled checks made payable to the daycare facility, detailed hours the child attended the facility on a daily basis, and a copy of the facility’s license.
Transportation Benefit – In the event of a covered accidental death occurring more than 100 miles from the insured’s primary residence, complete and submit the Claim Statement Form (5114). Indicate the benefit for which claim is being made along with a certified copy of the death certificate and police report.

Common Carrier – In the event of a covered accidental death on a common carrier, complete and submit the Claim Statement Form (5114). Indicate the benefit for which claim is being made along with a certified copy of the death certificate, the police report, and a copy of the passenger fare ticket for the insured.

Coma Benefit – In the event of coma resulting from a covered accident, complete and submit the Claim Statement Form (5114). Indicate the benefit for which claim is being made along with the accident report and all medical records diagnosing the coma and documenting the cause.

Occupational Assault – In the event of a covered accidental death resulting from occupational assault, complete and submit the Claim Statement Form (5114). Indicate the benefit for which claim is being made along with a certified copy of the death certificate and police report.

Short-term disability (STD) claim submission

All short-term disability claims are to be submitted by using the STD Claim Form (LC5180-18).

Humana Inc.
Attention: Group Claims
PO Box 2993
Hartford, CT 06104-2993

All questions concerning salary, last date worked, and the individual eligibility are verified directly with the employer. If there are any questions of either the claimant or the physician, they are contacted directly via phone to get the timeliest responses possible. All documentation from the claimant, employer and physician must be received before a claim will be considered for payment.

If the claim is approved for payment, benefits are determined based on plan provisions. Benefits will continue to be received based on the occupational definition under the policy, medical evidence provided, and the physical restrictions and limitations present.

If the medical evidence presented does not substantiate the period of disability, the claim may be referred to our medical staff. For clarification of medical evidence, our staff will contact the attending physician first. If sufficient evidence cannot be obtained, the claim will be denied. A letter will be sent that clearly outlines the reason for denial, information needed to reconsider the claim, and information on how to file an appeal. The employer is always provided a letter advising of the reason for the denial. The letter will not contain confidential information.

Transition short-term disability (STD) to long-term disability (LTD)

If your plan also provides LTD benefits, the claim will be automatically referred to the LTD examiner. There is no need to file a separate LTD claim form. The examiner will open a case file and conduct a claimant interview. Additional information will be gathered to allow for appropriate disposition of the claim.

Long-term disability (LTD) claim submission

All long-term disability claims are to be submitted by using the LTD Claim Form (LC4571-18).

Humana Inc.
Attention: Group Claims
PO Box 2993
Hartford, CT 06104-2993

Claim submissions must include documentation noted on the claim form, along with a job description from the employer. Claim forms should be submitted at least halfway through the policy elimination period.

The claim examiner reviews the claim for specific criteria including:

  • Eligibility
  • Medical certification
  • Offsets
  • Additional information required:
    • Medical records
    • Specific questions of the treating physician (diagnosis specific)
    • Workers’ compensation records, etc.

This process will occur within five days of receipt of the claim.

If additional information is required, the examiner will conduct a claimant interview by phone to clarify discrepancies with claim submissions. The examiner also may follow up with the attending physician or employer to obtain additional information.

When all requested information is received, the LTD examiner reviews the documentation to determine if criteria have been met. This includes but is not limited to the following:

  • Are the limitations consistent with the diagnosis and objective medical documentation?
  • Is there objective medical documentation certifying total disability from the last day worked?
  • Does the medical documentation substantiate total disability beyond the elimination period?
  • Is the length of disability reasonable based on diagnosis, age, and job duties?

Depending on the individual claim circumstances, the claim also may be referred to one of our nurses or to a physician for review.

If the claim is subject to the pre-existing condition limitation under the policy, an investigation will be conducted to determine if the limitation applies.

When sufficient information is received to make a claim determination, the claim will be finalized and all parties advised of the decision. Approval and denial letters are generated the day of the decision. If the claim is approved, initial compensation is released the same day.

List of forms

Group Term Life Enrollment Form (Employer Groups) 1465
Group Term Life Enrollment Form (Association Groups) 1466
Group Term Life Insurance Evidence of Insurability (EOI) Form 1474
Group Term Life Insurance Portability Election Form 1488
Employee Request for Change Form 1475
Claim Statement Life/AD&D 5114
Waiver Claim Form 5088
Waiver of Group Insurance Form 1504
Group Disability Enrollment Form 1493
Group Disability Evidence of Insurability 1490
Notice of Conversion Right 5258
Affidavit of Domestic Partnership 5841
Statement of Termination of Domestic Partnership 5847
STD Claim Form LC-5180-18
LTD Claim Form LC-4571-18
Group Insurance Beneficiary Designation/Change 6249
   Absolute Assignment of Group Life Insurance Benefits 6271

 

Supplies

All forms can be accessed through KMGAmerica.com.