Variable Hour Employee Billing

If the employee enrolls in the employer’s MEC coverage but does not have enough wages in a given payroll period to cover the required premium, the employer can require the employee to pay his or her share of the premium out-of-pocket. The regulations adopted rules from COBRA that further complicate this process.

Service Features

We can eliminate the hassle of billing and collecting premiums from variable hour employees. Our goal is to provide you with a simple solution. Our billing service includes the following:

  • Providing coupon books to variable hour employees;
  • Collecting premiums on your behalf;
  • Balance billing for any unpaid premiums;
  • Tracking payment deadlines;
  • Sending notice of coverage termination if the premium is not received by the end of the grace period; and
  • Responding to questions from employees.
  • We also provide a convenient and intuitive online portal for you to monitor payment activity.

Neither American Fidelity Assurance Company nor American Fidelity Administrative Services provides tax or legal advice and, given the complexity of these laws, we always recommend working with your legal counsel on how the laws impact your specific situation. 

ESB-5964-0617