DISCLAIMER: The information provided in this post is for informational purposes only and should not be considered as legal advice. Administering self-funded employee benefits involves complex legal and regulatory considerations that may vary depending on your specific situation. It is strongly recommended that you consult with qualified legal and benefits professionals to address your unique needs and ensure compliance with all applicable laws and regulations. The authors and publisher of this post do not assume any liability for actions taken based on the information provided herein.

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An employee being told they're going to die from a terminal illness is devastating news for so many people. Here are some important things for you to remember as a self-funded employer to help them from a benefits perspective. 

Administering Self-Funded Employee Benefits: A Comprehensive Guide Administering self-funded employee benefits can be a complex task, especially when employees face critical health issues like a terminal cancer diagnosis. In this guide, we'll explore key considerations and strategies for managing your self-funded benefits plan effectively.

Understanding Self-Funded Benefits Self-funded benefits allow employers to directly cover employee health expenses, offering more flexibility and cost control. When an employee receives a terminal cancer diagnosis, it's crucial to provide the right support during this challenging time.

Key Considerations Life Insurance Policies: Review the group life insurance policy you have for your staff. Many employers offer group policies that include an accelerated benefit option, allowing employees to access cash while they're still alive. This can be a valuable resource in critical times.

Beneficiary Updates: Ensure employees have the opportunity to update their beneficiaries. This includes life insurance, critical illness policies, HSAs, and 401(k) plans. Keeping these records up-to-date ensures that employees' wishes are respected in case of the worst.

FMLA and COBRA: Understanding when employees transition from active employment to FMLA (Family and Medical Leave Act) and, if needed, to COBRA is essential. Failing to make these transitions correctly can lead to complications and disputes, particularly regarding medical bills and insurance coverage.

The Importance of Open Communication Effective communication with your broker is critical in these situations. Brokers can provide insights and strategies to ensure smooth transitions and financial stability during critical health events. For more information and personalized guidance on administering self-funded employee benefits, f reach out to us at 765-639-4398 or email [email protected]. By staying informed and making the right decisions, you can effectively manage your self-funded employee benefits plan and support your employees during challenging times.