What is proof of insurance?

Proof of insurance is a document that shows that a person is covered under an insurance plan. While it applies to many types of policies, the most relevant to HR is health insurance. Employees (or their dependents) may need to show proof of insurance for health coverage in a few different scenarios:

• at the doctor’s office or hospital
• When enrolling in a college or university
•  When filing income tax

Although proof of insurance is not required to be submitted to the Internal Revenue Service (IRS), you still need to have proof of coverage in case of an audit.

What is considered proof of insurance?

Below are some examples of proof of health insurance. Not all of these may be applicable or valid in every situation, so be sure to check with the requesting institution to make sure you have the correct documentation:

• Current Member ID Card
• A letter from your insurance company confirming coverage, sometimes called a certificate of coverage
• Explanation of Benefits
• Fill out Form 1095-A if you are covered under a plan purchased from the Health Insurance Marketplace 
• Form 1095-B  if you purchased coverage directly from an insurer or are employed by a small business with fewer than 50 full-time employees
• Fill out Form 1095-C if you are covered under an employer-sponsored plan 

Proof of Insurance Best Practices for HR Teams

One way HR teams can help provide employees with better benefits access and  avoid mistakes  is by developing a comprehensive communication strategy about benefits and health coverage. Proactive messages help ensure that employees understand the details of their health benefits, and where to find proof of insurance and other documents when they need them.

In a survey conducted by Deloitte,  68% of respondents  said they don’t take full advantage of employer-provided wellness resources because they find them confusing or complicated. Here are a few things HR benefits administrators can do to bridge this knowledge gap:

• Defining proof of insurance and providing concrete health coverage examples.
• Highlighting digital coverage information that they can access from virtually anywhere.
• Emphasize the advantages of seeking medical care and utilizing available benefits.
• Training employees on internal resources, such as a centralized HR software platform with employee self-service features.

Keeping your employees informed about their benefits and how to use them can lead to long-term positive results at your company. For example, according to McKinsey, closing the communication gap around coverage can  help advance health equity in the workplace  . In other words, by modeling a wellness-focused mindset and showing employees how to navigate every aspect of their benefits, you can contribute to a more inclusive company culture overall and create a healthier, more informed workforce.