On-exchange Initial Payment Deadline Warning

[dgoldenz]

CareFirst BCBS sent out a notice to brokers today with the following statement:

"If the initial premium payment is received and processed after the 7th of the month, CareFirst will cancel the policy and notify the
exchange. EG: Member requests an August 1 effective date and the premium is received and processed on August 8th or later. The policy will be cancelled and
CareFirst will notify the Exchange. "


When someone applies under SEP rules, they can apply up to the last day of the month and the policy becomes effective the first of the following month. So if someone applies July 31 with an August 1 effective date and does not receive their invoice until August 10th, their policy will have already been terminated. When the policy gets terminated for non-payment, the client is unable to go back to the exchange and apply for another policy until the Open Enrollment period. I called BCBS and they confirmed this is correct. Nobody seemed to understand and/or care why this could be a major problem.

Make sure you are aware of all payment deadlines for the companies you are selling.

 

[AllenChicago]

Just had this happen to me last week and posted to the forum about it. At least our Illinois Blue Cross grants 10 days, but that's still not enough time!

Client Enrolled on 6/31. Effective 7/1 if premium received on time. Received Bill 7/6. Mailed Payment 7/8. Policy cancelled 7/11. Activated today 7/14, after mailed payment was processed.

This was OFF-exchange. As I said last week, the ACA has driven many insurers into rabid irrationality. They've billed properly for over 75 years, but all of a sudden here comes ObamaCare, and they forget how to even tie their shoe laces?

On the other hand, this could be one way Insurers are working with certain people to indirectly induce leadership changes this November.
ac

 

[houcoogster]

Just had this happen to me last week and posted to the forum about it. At least our Illinois Blue Cross grants 10 days, but that's still not enough time!

Client Enrolled on 6/31. Effective 7/1 if premium received on time. Received Bill 7/6. Mailed Payment 7/8. Policy cancelled 7/11. Activated today 7/14, after mailed payment was processed.

This was OFF-exchange. As I said last week, the ACA has driven many insurers into rabid irrationality. They've billed properly for over 75 years, but all of a sudden here comes ObamaCare, and they forget how to even tie their shoe laces?

On the other hand, this could be one way Insurers are working with certain people to indirectly induce leadership changes this November.
ac

AC I want to know what type of fish oil supplements you're taking.

Absolutely brilliant observations!

N/J

 

[RayNY]

I'd like to think the insurers are knowingly creating issues to prompt people to open their eyes, but my gut tells me that they are legitimately trying and this law has truly thrown so many monkey wrenches in the gears that even something as simple as processing payment and effectuating coverage is now an ordeal.

 

[dorado]

They didn't even dream in the huge number of enrollees, acording to 3 different carriers, and are still not ready to handle the service.