When employees switch insurers, what cost must NOT be credited according to regulations?

When employees switch insurers, they typically have their previous plan's benefits taken into account when calculating costs for their new plan. However, any unearned premiums that were paid to the previous insurer do not need to be credited when transitioning to a new insurer.

Unearned premiums refer to the portion of the premium that has been paid for coverage not yet provided by the insurer; essentially, it represents coverage that is in the future. Since these amounts are considered to be a payment for future coverage that is no longer applicable once the insurer is changed, there is no obligation for the new insurer to credit these amounts against the new policy.

In contrast, expenses toward the annual deductible, costs of copayments for prescriptions, and crediting for prior plan benefits are all factors that can impact the transition between insurers and generally are required to be accounted for by the new insurer to ensure continuity of coverage and benefits.