Group Plans Locking Rates Until Dec 2014

[STIBROKER]

Is there any.....a facebook post....

"My agent has already told us we're probably looking at a 56% rate hike at the first of 2014. I have always paid all of my employees health insurance, but next year, that will have to change. It really sucks."

 

[Yagents]

Ann can probably give you a better answer, but I know Aetna and UHC are doing it. Aetna has another webinar tomorrow morning, and wed morning.

 

[Ann H]

Aetna, Humana, and UHC have all announced programs to allow groups to voluntarily change their renewal date to late 2013 (such as 12/1/2013) so that the Obamacare doesn't hit them so hard until the renewal in 2014. That is for group plans. I asked Health Net last week, and they do not have their decision yet, and I have not heard that BCBSAZ is doing this.

 

[STIBROKER]

Aetna, Humana, and UHC have all announced programs to allow groups to voluntarily change their renewal date to late 2013 (such as 12/1/2013) so that the Obamacare doesn't hit them so hard until the renewal in 2014. That is for group plans. I asked Health Net last week, and they do not have their decision yet, and I have not heard that BCBSAZ is doing this.

what if I write a new group plan effective next month..or dec.....will all three do this.....

 

[Ann H]

ANY carrier will do that for new groups written in late 2014 because PPACA applies on the renewal date on or after 1-1-2014.

 

[timsip]

Is there any.....a facebook post....

"My agent has already told us we're probably looking at a 56% rate hike at the first of 2014. I have always paid all of my employees health insurance, but next year, that will have to change. It really sucks."

I was approached by a small group yesterday that is looking for options; their current coverage is increasing about 20% at the end of May. Admittedly it is a very small group, so that may be why. He isn't sure he will be able to afford to offer coverage for his employees going forward.

 

[Dave020]

Anthem Blue Cross and Aetna for sure in CA. Blue Shield, oddly, is not doing that adjusted renewal date.

Remember, groups who choose to adjust renewal date to 12/13 will have to "purchase" the renewal option so their normal 12-month rate guarantee will be predicated on the group rates at that time, not the current guaranteed rate they have. If rates go up 30-35% between now and December (our carriers are raising group every 3-4 months) then the buy up on renewal date might be less attractive than it would seem with the rates they have now.

 

[Quotebroker]

Anthem Blue Cross and Aetna for sure in CA. Blue Shield, oddly, is not doing that adjusted renewal date.

Remember, groups who choose to adjust renewal date to 12/13 will have to "purchase" the renewal option so their normal 12-month rate guarantee will be predicated on the group rates at that time, not the current guaranteed rate they have. If rates go up 30-35% between now and December (our carriers are raising group every 3-4 months) then the buy up on renewal date might be less attractive than it would seem with the rates they have now.

Isn't Blue Shield just begging to have their business rolled to Anthem en masse 12/1/13?

 

[LOM58]

We have been told informally that BCBSIL will be joining the party. Going to be one hectic year end 2014!