What is a Default Plan?
A default plan lets the Benefits Administration application automatically enroll employees when they become eligible. There are four default types you can use to define a default plan. The table below describes the four types.
| Type | Description |
|---|---|
| Always default | Benefit update programs enroll an employee when the employee becomes eligible. |
| By benefit type | Benefit update programs enroll an eligible employee if the employee has no other benefits of the same benefit type (for example, no other health plan). |
| By plan category | Benefit update programs enroll an eligible employee if the employee has no other benefits of the same plan type and category (for example, no other spending account plan with the category medical reimbursement"). |
| Do not default | Benefit update programs do not automatically enroll an employee. A mass enrollment program will list, but not enroll, employees who are eligible for the plan. |
Example of Always Default
The B & B Clothing Company gives all eligible employees $10,000 of life insurance coverage in the basic life plan regardless of any coverage the employee elects in the supplemental life plan.
Example of Default by Plan Category
Under the benefit plan type for employee life insurance, the Johnson Book Store offers their employees two life plans and one AD&D plan identified by plan categories. An employee can chose from within the life plans to receive either a $15,000 flat amount of coverage or a multiple of their salary. The flat amount life plan is defined to default by plan category. If the employee does not choose the multiple of life plan, the update program will automatically enroll them in the flat amount plan.