Process for California small business groups that end health plan coverage

UnitedHealthcare never likes to see a group terminate coverage, but business models, budgets and benefit requirements can change. If a group decides to end their health plan coverage, the following steps can help ensure a smooth and timely transition:

  • Termination must be submitted within 30 calendar days of the requested effective date of cancellation.
  • Count back 30 calendar days from the date the cancellation request is received and grant it the first of the following insurance month.
  • A lapse of payment alone does not mean that coverage has been terminated.
  • The group will be responsible for any incurred premiums if/when a lapse of payment occurs.
  • The group will need to specify what products/lines of their coverage they want terminated.
  • To successfully terminate a member/individual from the plan, termination must be submitted 60 days prior to the effective date of cancellation.

The group must provide their official request to terminate in writing on company letterhead, and include their:

  • Policy number
  • Date of requested termination
  • Reason(s)

Groups with dual-option coverage must:

  • Provide HMO and PPO Group numbers 
  • Confirm whether HMO or PPO should be termed or remain active

For questions, please contact your broker or UnitedHealthcare representative.

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