Small Business Health Options Program (SHOP) FAQ
Guidance for FAQ regarding 834 Transaction and Termination Transaction
Program Area: Small Business Health Options Program (SHOP)
Question: If someone terminates employment mid-month, is the FF-SHOP policy to cover the enrollee through the end of the month or would we prorate in this situation?
Answer: An employee (and dependent) may voluntarily request to terminate their FF-SHOP coverage. The termination effective date will be the last day of the month when the FF-SHOP is notified. An employer may terminate coverage for all enrollees covered by the employer group health plan effective on the last day of any month, provided that the employer has given notice to the FF-SHOP on or before the 15th of the month. If notice is given after the 15th of the month, the FF-SHOP may terminate coverage on the last day of the following month.
Issued by: Centers for Medicare & Medicaid Services (CMS)
Issue Date: April 14, 2014
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