What are Coverage Types?

When you set up your benefit plan, you identify what kinds of coverage you want to offer your employees. Infor enables you to use three types of coverage to set up your plan.

The list below describes the three coverage types.

Type Description
No Coverage (0) No coverage is offered under the benefit plan. You would use No Coverage for benefit plans like defined contribution and spending accounts that have employee contributions but no coverage.
Coverage Options

You define the specific options that an employee may choose upon enrollment.

For example, a health plan might offer options such as single, employee + 1 and family.
Coverage Amounts

A coverage amount is determined in one of several ways. You can define a coverage amount as a specific flat amount, a chosen amount based on set increments, or a calculation using a percent or multiple of an employee's salary.

For example, you can define an employee life plan in which an employee can elect a coverage amount of one to five times his or her salary. Or, a disability plan that offers coverage as a percent of an employee's salary.
Note: You have the option of using a custom calculation for determining coverage. Custom calculations use the User Exits functionality. For more information, see the Application Development Workbench Standards.

The coverage type is then used in conjunction with contribution types to further define a benefit plan.

No Coverage Example

River Bend Hospital's 401(k) plan is based on employee contributions.

To define this plan, River Bend would select No Coverage to be entered in the Coverage Type field.

Coverage Option Example

River Bend Hospital has a health plan that has the following coverage options:

  • Employee

  • Employee plus one

  • Employee plus two

  • Employee plus three

  • Full family

  • Medicare supplement

To define this plan, River Bend would select Coverage Options to be entered in the Coverage Type Field.

Coverage Amount Example

River Bend Hospital's Supplemental Life plan allows employees to select coverage in $5,000 increments up to a maximum coverage of $75,000 up to the age of 60. After age 60, the coverage is reduced by 50 percent.

To define this plan, River Bend would select Coverage Amounts to be entered in the Coverage Type field.