Social Security Numbers/Birth Dates - Why?

Irie

Our health insurance is up for renewal early next year. The carriers are asking for census information to include employees's Social Security Numbers and birth dates. Does anyone know why the carriers need this information? I don't like to provide a SSN and birth date. What if the information ends up in the wrong hands when I send it via e-mail?

NaeNae55

You cannot guarantee the safety of any employee's social security number. However, you must do your best to protect them and also to comply with the law. It is my understanding that you cannot legally email a social security number unless you have followed security procedures. For instance, if you can reasonably lock the file so that only those with passwords can get into it, you should be ok. Just be sure and send the password separately.

Good luck!

Nae

lrobb

We renewed ours last summer. I was able to limit the information required for a quote by listing only the gender, age and income for each employee (Quote included life insurance). After we decided which company to go with they got the rest of the information on their application forms.

hrdilemma

In Health insurance the policy rates are largely determined by the average age of the group and the prior years claims experience. I don't release SSN until open enrollment but we do provide ages not DOB for the average age of our group for rating purposes. Locations is also important if you have multiple locations as we do and the sex of the EE's

I give them a breakdown of -

how many females how many males total number of EE's Average age
and the break down of how many carry what selection of coverage:

# of self only, # with Child/ern # with spouse # with family and copies of prior claims experience.

davids

I agree that SS numbers should not be needed by the insurance companies. At my last employer, the insurance company used the employee's SSN as the employee's ID number. We insisted that they stop using the SSN as the ID and issue some other number. The insurance company grumbled, but eventually acquiesced to our demand.

As for the date of birth, does your coverage provide different benefits depending on age, such as a complete physical every five years if you are younger than 30; every two years if you are between 30 and 49, and every year if you are 50 or older? If yes, the insurance company will need the DOB.

Irie

I don't have a problem with a date of birth because I understand insurance carriers use that information to determine the age of the insureds to set the rates.

My concern is that a Social Security Number has nothing whatsoever to do with insuring someone. If an unscrupulous person were to get ahold of that list with names, SSNs and birthdates, they could have a field day!

Just wondering if anyone knows what part the SSN plays in setting insurance rates.

NaeNae55

Insurance companies often ask for SS numbers when you get a quote. They are doing their best to avoid a scam. Some employers have been known to tell the insurance company lies x:o :

"We have 100 employees and 65 will have the insurance.
2 have health issues (high blood pressure but under control), but the rest are very heathly."

Insurance company gives quote. Contracts are signed. Premium is paid.

"Bad news! 40 people who normally elect insurance have decided not to this year, and 8 of the ones taking the insurance have suddenly become ill with a variety of diseases."


If you give the insurance broker/company the specifics of each employee, they can't quote on substitute employees. They are quoting on real and verifiable information. That doesn't mean you HAVE to give the SS numbers. You can usually talk them into accepting something else, but this is why they want the numbers. They want to know for sure they are quoting for the right group of people.

Good luck!

Nae

cnghr

We have never provided SSNs for rate quotes. We use a census that includes birthdates, because age does figure into it, but even if SSNs were included, I can't imagine that an insurance company would verify the SSNs before providing a quote. Age, gender, the kind of coverage (family, employee only, etc.) are the important factors in getting an accurate quote.

NaeNae55

I didn't mean to imply they verify social security numbers the way an employer does on an new hire. They just make sure that the actual enrollment information matches the information given for the quote. Social security numbers is just one way to make sure you are quoting for the actual employees and not dummy information.