Thousands face insurance cutoff

• By MARSHA SHULER
• Advocate Capitol News Bureau
• Published: Dec 4, 2008 - Page: 15A - UPDATED: 12:05 a.m.

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Some 12,000 people who get their insurance through the state’s Office of Group Benefits are facing loss of coverage at month’s end, the agency’s top executive said Wednesday.

The people are the unverified dependents of state employees and retirees who have insurance under Group Benefits policies.

Office of Group Benefits is making a final appeal for policyholders to submit required documents to verify their legal relationship to each dependent covered under their insurance plan, CEO Tommy D. Teague said.

Beginning Monday, insurance claims will not be paid on the 12,335 people for whom verification has not been received, Teague said. Coverage will end Dec. 31, he said.

In addition, the state employees and retirees who have been carrying ineligible dependents on their policies face financial sanctions, according to the agency.

“If they get their documentation in this week, their coverage won’t be canceled and claims won’t be held up,” Teague said.

Nov. 30 was the announced deadline for compliance.

Last year, the legislative auditor advised Group Benefits that the lack of verification of dependents posed a system weakness.

Teague said his agency agreed and requires  policyholders to provide birth certificates, marriage licenses and other forms of documentation when dependents are signed up.

As of Wednesday, Group Benefits had received birth and marriage certificates, custody orders and other legal documents confirming the eligibility of more than 116,516 spouses, children, grandchildren and other dependents covered by the agency’s health plans and life insurance on May 1, 2008.

Group Benefits provides health coverage and life insurance for all state agencies and some Louisiana school boards.

Only employees, retirees and their actual legal dependents are eligible to receive benefits.

Plan members can visit the special dependent verification Web page on Group Benefits’ Web site,  http://www.groupbenefits.org, which features complete details, a list of documents required for each category of dependent and a compilation of useful resources to obtain certified copies of required legal documents.