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Understanding Health Insurance Billing
Understanding Health Insurance Billing

How insurance premiums move, and other billing related answers

Ayush S (CEO, Warp) avatar
Written by Ayush S (CEO, Warp)
Updated over a week ago

Overview

When offering benefits to your employees, insurance carriers will bill your company directly each month for all premiums. While Warp handles payroll deductions and tax compliance, you are responsible for paying your insurance carriers directly.

How Health Insurance Payments Work

Employers set up payments to health insurance separately, but having insurance integrated with payroll means you don't have to worry about accurate reporting and withholdings. Here's how it works:

1. Premium Calculations

  • Once employees enroll in health insurance plans, Warp calculates the premiums owed to the carrier

  • Premiums vary based on plan type, coverage level (individual, employee plus spouse, employee plus children, family), and employer contributions

2. Payroll Deductions

  • Warp automatically deducts insurance premiums from employees' paychecks

  • Deductions follow your payroll schedule (weekly, bi-weekly, monthly)

  • Deducted amounts stay in your company's bank account for carrier payment

3. Carrier Billing Setup

  • You'll set up billing directly with the health insurance provider

  • Each carrier has different payment systems (auto-pay, manual, check)

  • We recommend setting up automatic billing when available

How Premium Billing Works

Getting Your Bill

- Carriers send monthly premium invoices directly to your company

- Delivery methods vary by carrier (mail or email)

- Contact your carrier to change invoice delivery preferences

- Bills typically arrive 15-30 days before due date

Payment Process

Warp's Role

- Handles employee payroll deductions

- Manages tax compliance

- Processes pre-tax deductions from employee paychecks

- Deductions remain in your company bank account

Your Role

- Pay carrier invoices directly by their due date

- Submit payments through carrier's preferred method

- Ensure total premium payment (both employer and employee portions)

- Maintain payment records

Common Payment Methods

Most carriers accept:

- ACH/automatic payments through carrier portal

- Check payments

- Phone payments

- Online one-time payments

Changing your bank account?

You will need to update your bank account information with your carrier(s) directly. Failure to do this in a timely manner will lead to termination of your company's health plans.

To update your bank account with the carrier(s)

1. For Auto-Pay/ACH

- Log into your carrier's portal

- Update banking information at least 5 business days before next payment

- Contact carrier directly if you can't access portal

- Keep old account active until new account confirmed

2. For Check Payments

- Simply start using new account for next payment

- Ensure sufficient funds in old account for any pending checks

Important Notes

- Update each carrier separately

- Allow time for processing

- Verify first payment from new account

Important Considerations

Dismissed Employees

- Carriers typically take 1-2 billing cycles to remove terminated employees

- Continue paying full invoice amount including dismissed employees

- Carrier will issue credit for overpayment

- Contact Warp support if employee remains on invoice after 2+ billing cycles

First Payment Notes

- Initial payment often called "binder premium"

- Many carriers require first payment via ACH

- Set up payment method before first bill due date

Best Practices

1. Review invoices promptly when received

2. Set up automatic payments when available

3. Keep payment confirmation records

4. Include invoice/group numbers on check payments

5. Allow 5-7 business days for check processing

Getting Help

- Forward carrier notices to [email protected]

- Contact your carrier directly for payment-specific questions

- Access carrier contact information in your Warp dashboard

Payment Troubleshooting

- Missing invoice: Contact carrier directly

- Payment posting issues: Allow 3-5 business days for processing

- Credits for terminated employees: Expect on next 1-2 invoices

- Payment confirmation: Available through carrier portal or contact carrier

Remember: Timely premium payments are crucial to maintain your group insurance coverage. Mark due dates on your calendar and consider setting up automatic payments through your carrier's portal when available.

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