Employers: Direct Pay

Employers should never advise their former employees to ignore SHBP bills received from ADP’s subcontractor, WageWorks.

Direct Pay status means SHBP is directly billing a participant for coverage and premiums are collected by SHBP via ADP’s subcontractor, WageWorks. SHBP directly bills certain Retirees, and all Pending Retirees (including individuals waiting for approval of their retirement application due to a disability), Former Employees enrolled in State Extended Coverage and COBRA Participants.

It is extremely important to understand that individuals who are placed on Direct Pay status that fail to pay their premiums to SHBP will have their coverage terminated with no right to reinstatement unless they return to work in a benefits eligible position with an SHBP Employing Entity.