Do carriers refund premium upon cancelation?

[somarco]

Insurance is an advance fee for service business. If it is within free look period they will refund after that only in extraordinary circumstances

Any idea how the DOI feels about collecting unearned premiums and not refunding on cancellation?

 

[Dave020]

Thanks Chuck. How about the group? I won't have to wait till next renewal date to change plans?

If you are changing carriers, you can do any first of the month (or 15th) that they qualify for. They key I have found it whether or not they have already paid the premium. If group X is switching carriers and has paid the Sept premium, I go with an October 1 start date and advise them to not pay the October premium. In the unlikely event there was a problem with the new carrier, CA groups have a 30-day grace period to pay the premium.

Also, just FYI, in CA you have until the 5th business day of the month to submit applications for new groups. So for September 08 you have until the 8th of September to get the applications in to the carrier. During Focal Reviews they sometimes extend this out (Blue Cross does) since it will be busy and they get backlogged. Last May Blue Cross gave until the 18th or so of May to submit new business for a May 1 start date.

If they are staying with the same carrier, generally they may only make plan changes during open enrollment (renewal month) and also Focal Review (Blue Cross), although not both times, one or the other.

 

[Dave020]

One more thing that crossed my mind.

In CA, groups 2-50 are guaranteed-issue, but only on the initial enrollment. Subsequent changes and upgrades are underwritten and can be denied.

With Anthem BC, your best bet is to enroll new groups as "Employee Elect, All Plans". This offers the group the entire portfolio of plans and when the time comes to change plans, the group only needs to submit a letter requesting the change instead of new applications and all of that.