2014 PPACA Changes Affect In-force Groups at Renewal

[Ann H]

I talked to my group renewal specialists from Humana and from United Healthcare to confirm this. They both agreed, that the 2014 changes to group plans will apply at the group's first renewal FOLLOWING 1/1/2014. One of the reps said that many groups are requesting an early renewal in November or December of 2013 so that their first renewal in 2014 is late in the year.

For those of you that do just IFP, this is good news. After open enrollment is done, you may still have a stream of business coming in. For those of us who do group & IFP, this is excellent news.

 

[HealthGuy]

What if renewal is Jan 1st 2014 ?

 

[Ann H]

What if renewal is Jan 1st 2014 ?

Then the group complies with all of PPACA on 1/1/2014. Guess what is the most common renewal date of the year, too? You're correct! It's January 1st. I need to see how many of my groups should have their renewal dates changed to 12/1.

 

[Yagents]

Another reason to change those renewal dates for small groups:

Feds weigh in on PPACA cost-sharing limits | LifeHealthPro

 

[HealthGuy]

So you can request a month early renewal date to defer higher costs for about 11 months? Is that all this accomplishes or am I missing something more?

 

[Ann H]

Yes, you are correct. For some groups, that delay is like gold. Their rates would greatly increase under 2014 PPACA rules, and they probably would welcome a delay of 10 or 11 months before deciding if they want to send their employees to the exchanges. For other groups, they will want to drop the group plan as soon as possible, if a lot of employees would be financially better off at the exchange.

 

[HealthGuy]

How can you request early renewal date? Never thought you could do this or request it on a group plan say from United or Blue Cross?

 

[Ann H]

I'm not sure if all the carriers will do it. One of my carriers is doing it, and I haven't asked the others yet. I read somewhere that HHS closed this loophole for employers with 50+ FTE's if they were trying to avoid the ER pay or play penalties.

 

[stuy119]

Depending upon their renewal, you can move them to another carrier a month earlier than normal. That's a loophole that would take a lot of time to uncover.

All depends on the renewal number for justification, however.

 

[HealthGuy]

Ann can u share which carrier? I have one main one for groups pm me if you cant say on forum. Thanks.