Rates are Going Up and Down at Blue Shield in the 4th quarter.

Decreasing rates for ACA plans: Blue Shield has announced that rates under the Affordable Care Act (ACA) plans will receive a reduction. The reduction for HMO plans will be 1.8% while the reduction for PPO plans will be 7.7% Increasing rates for “Grandmothered plans: On July 7, 2014 Governor Brown signed Senate Bill 1446 (aka. The Grandmothering Law) into effect. This law allows small groups renewing between October 1st – December 1st to keep their current non-ACA plans (Grandmothered plans) in effect for another year. Those opting to keep their non-ACA plans for another year can expect rate increases of 1.2% for HMO plans and 9.9% for PPO plans. What does it all mean and which plans work best for me? • Companies with a younger demographic could see significant savings by switching to ACA plans. The ACA plans rate each employee based on their date of birth therefore a 30 year old employee will pay the rate for a 30 year old. Grandmothered plans have age-banded rates which means that a 30 year old is paying the same as a 39 year old. • Companies with an older demographic may be better holding off with Grandmothered plans for another year for the same reasons that a company with a younger demographic would benefit from switching (due to age-banded rates). • Companies that have many employees with families may also be better off sticking with the Grandmothered plans since the ACA plans will rate each dependent individually. In other words, a family of five that switches to an ACA plan can expect a separate rate for each family member based on...

Grandmothering Rules for Anthem Blue Cross of CA

The ABC’s of Grandmothing Groups qualifying – Groups with an anniversary date in the 4th Quarter may participate in the opportunity to Grandmother their Legacy plan; 2014 October, November, December anniversary dates ONLY. Renewals – 4th Quarter renewals will be specific to the group’s current Legacy plan only. Automatic – 4th Quarter Groups will AUTOMATICALY stay on their LEGACY plan. If a group wants to move to an ACA plan, they must fill out and submit the ACA Opt-In form (attached) by the 10th of the month before the renewal date. For example, if a group has an October 1st renewal date and is interested in moving to ACA plans the Opt-in form must be to Bedrosian & Associates by 9/10/14. No exceptions 411 – It is VERY important to remember that no exceptions will be made for: pre-4th Quarter Groups to participate, Opt-In Due Dates missed, or for groups that Opt-In to an ACA plan then decide they want out. Important Dates: July 18 – October Legacy renewals will be released (eRenewal & GA CD’s) July 18 – October ACA renewal will be posted. July 21st – October Legacy renewals mailed to Bedrosian & Associates July 24th – October Legacy renewals mailed the company. Other important information: Movement – The group will have the option of only the plans currently available to their group; members will be able to move into different plans currently available to the group. OPT-IN Rules– Groups wanting to move from a Legacy plan to an ACA plan MUST Opt-In to do so. The Opt-In form must be received by Anthem no later than the 10th...

SeeChange Health Insurance Grandmothering Rules

As you no doubt are aware, the Governor signed into law Senate Bill 1446, sometimes called the “Grandmothering” Bill. This legislation allows some small groups to keep their current health insurance coverage when they renew in 2014 even if their current coverage does not meet certain requirements of the Affordable Care Act. To simplify: clients get to keep their 2013 plans for another year. Many clients would like to take advantage of this opportunity. SeeChange is pleased to inform you they can. SeeChange Health Insurance will automatically renew small groups with anniversary dates of October, November or December 2014 into their current 2013 plans unless they notify SeeChange they prefer to move to one of our ACA-compliant plans. Some things to note: 2013 underwriting rules apply. This means, for example, groups may downgrade their coverage with a simple request, but upgrades are subject to underwriting approval. Also, some groups may receive a new RAF. SeeChange is filing rates for these plans now. Due to SeeChange wanting to extend the option to stay with their current plan to groups renewing in October SeeChange is redoing the renewal packages for these groups. In June, SeeChange impacted groups received notice that we were withdrawing our 2013 plans. While our 2013 plans remain unavailable for new sales, they will remain available to clients renewing October, November or December 2014. If Bedrosian & Associates can be of any assistance to review your SeeChange or any other medical insurance policy please do not hesitate to contact...