Proof of Insurance

What Is Proof of Insurance?

Proof of insurance is a document that shows an individual is covered under an insurance plan. Though applicable to several types of policies, the most relevant to HR is health insurance. Employees (or their dependents) may need to show proof of insurance for health coverage in a few different scenarios:

• At a doctor’s office or hospital
• When enrolling at a college or university
• When filing income taxes

Though proof of insurance doesn’t need to be submitted to the Internal Revenue Service (IRS), you need to have proof of coverage on hand in case of an audit.

What Counts as Proof of Insurance?

Below are a few examples of proof of health insurance. Not all of these may be applicable or valid in every situation, so be sure to check with the requesting institution to make sure you have the right documentation:

• A current member ID card
• A letter from your insurance company verifying coverage, sometimes called a certificate of coverage
• Explanation of benefits
• Form 1095-A if you are covered by a plan purchased through the health insurance marketplace
• Form 1095-B if you purchased coverage directly from an insurer or are employed in a small business with fewer than 50 full-time employees
• Form 1095-C if you are covered by an employer-sponsored plan

Proof of Insurance Best Practices for HR Teams

One way HR teams can empower employees with better benefits access and avoid mistakes is to develop a comprehensive communication strategy around benefits and health coverage. Proactive messaging helps ensure employees understand the details of their health benefits, and where to find proof of insurance and other documents when they’re needed.

In a survey by Deloitte, 68% of respondents said they don’t take full advantage of employer-provided wellness resources because they find them confusing or complicated. Some things HR benefits administrators can do to close this knowledge gap include:

• Defining proof of insurance and providing concrete health coverage examples.
• Spotlighting digitized coverage information they can access from virtually anywhere.
• Reinforcing the advantages of seeking medical care and using the benefits available.
• Training employees on internal resources, such as a centralized HR software platform with employee self-service features.

Keeping your employees informed about their benefits and how to use them can yield long-term positive outcomes across your company.. For example, according to McKinsey, closing communication gaps around coverage can help advance health equity in the workplace. In other words, by modeling a wellness-centered mindset and showing employees how to navigate every aspect of their benefits, you can contribute to a more inclusive company culture overall and cultivate a healthier, more informed workforce.