Recertification is the insurance carrier's way of confirming that a company can potentially meet (or still meets) plan guidelines prior to their policy renewal. While most recertifications are requested around the time of the plan's renewal, a carrier can also request that a group go through the recertification process at any time during their plan year. If you have any questions about the recertification process, your broker will be able to help.
Who is subject to recertification?
Any group with an insurance policy can be required to recertify prior to their annual renewal, however this is most commonly seen with small groups (~10 or less employees) or companies that have seen massive shifts in their employees /enrollees (i.e. a company lays off 3/4 of their employees, etc.).
What is the recertification process like?
Usually this is a fill-out-and-return form, commonly called the Employer Verification Form, that is sent from the carrier to the group directly. The form often asks for information regarding enrollments (such as who waived coverage for what reason, in order to validate participation rates), a DE9C, and/or assorted other information to confirm the company's current state and decipher whether or not they can renew their existing policies with what they have.
What happens if a company does not pass recertification?
A company that does not pass recertification will likely need to switch carriers to one with underwriting guidelines that they can meet – their broker can help with this.