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Administrator Guide
Last Updated: 2023-09-08
Manage Benefit Coverage Types

Manage Benefit Coverage Types

  • For health care plans, create health care classifications.
  • For insurance plans, create insurance coverage targets.
  • For additional benefits plans, create additional benefit coverage targets.
  • For plans that require coverage, create default plans and priorities.
  • Security:
    Set Up: Benefits
     in the Benefits functional area.
Define the types of coverage that you plan to offer to your workers for each benefit plan type. Coverage types provide categories that benefit plans can fit in.
Examples:
Benefit Plan
Benefit Coverage Type
Health Care
Medical, Dental, or Vision
Health Savings Account
HSA or HSA Catchup
Insurance
Basic Life or Long-Term Disability
Retirement
401(k) or 403(b)
Spending Accounts
Health Care or Dependent Care
Additional Benefits
Long-Term Care or Commuter
  1. Access the
    Maintain Benefit Coverage Types
     task.
  2. As you complete each section, consider:
    Option Description
    Name
    Enter the name of the coverage type that employees see during elections.
    Limit the length of the name because it displays in a pop-up message that confirms the selection. Names longer than 20 characters might cause Workday to truncate the confirmation message.
    Classifications
    Limits the coverage type to a specific health care classification.
    Beneficiary Designation
    Specifies whether a worker must designate a beneficiary.
    Use Coverage Target
    Enables the coverage targets to be associated with rates and eligibility on the benefit plan.
    Plan Behavior
    Select:
    • Accept Amounts
       and
      Accept Percents
       when you define the minimum and maximum amounts that an employee can contribute. During enrollment, an employee can enter the contribution as either a flat amount or as a salary percentage.
    • Rates
       when you want to assign specific rates for an additional benefits plan.
    Only One Election
    Limits employees to elect only 1 benefit plan belonging to the specified coverage type. Otherwise, employees can select more than 1 plan belonging to the designated coverage type.
    Examples:
    • You have 2 medical benefit plans, an HMO and a PPO plan, and permit workers to select only 1 of the plans.
    • You have 2 basic life insurance plans and permit workers to select only 1 of the plans.
    Must Elect Coverage
    Select if employees must elect a plan belonging to the specified coverage type during benefit enrollment (employees can’t waive coverage).
    To implement this option, define default plans and priorities using the
    Maintain Benefit Defaults
     task.
    Display Employee Cost
    Displays employee costs for a benefit coverage type on the employee's benefit enrollment form and various reports.
    Required for the coverage type of plans with employee-defined contributions.
    Display Employer Contribution
    Display employer contributions to a benefit coverage type on the employee's benefit enrollment form and various reports.
    Flex Credits Can Be Applied
    Applicable for the benefits integration with Sun Life.
    Identify which coverage types that you want included when:
    • Calculating an employee's total benefit cost.
    • Applying benefit credits to offset the costs.
    Medical
    Indicates what coverage types that you want Workday to consider as medical. Used by:
    • Vermont Employer Health Care Contribution Tax
    • Patient Protection and Affordable Care Act
    Use Coverage From Plan Year End
    Available for Workday Payroll and integrations based on the
    Payroll Interface Output File
     template.
    Calculates benefit rates and coverage using the plan year-end.
    Verifies that the integration attribute
    Calculate Benefits as of Pay Check Date
     isn’t selected in the integration system.
    Enable Coverage Begin Date Override
    Available only to health care coverage types.
    Enables you to override the Workday-calculated coverage begin date for a plan.
    COBRA Eligible
    Indicates that a coverage type is eligible for COBRA.
    Select to automate COBRA eligibility checks and have the information automatically populated in the COBRA record.
Use the:
  • Benefit Coverage Types
     report to view a list of all coverage types and their detailed configurations.
  • Create Benefit Plan
     task to associate coverage types with benefit plans.
  • Maintain Enrollment Event Types
     report to identify the coverage types that are available to employees as part of an enrollment event.
  • Create Enrollment Event Rule
     task to define the requirements and conditions of enrollment.
  • Maintain Custom Validations
     task to create custom validations for enrolling employees in coverage types.
If you've enabled coverage begin date override, override the coverage begin date of a plan on the
View Summary
 page of a benefit election. This only applies to elections processed with the
Change Benefits for Life Event
 business process, or the
Correct Benefits
 task.