Policy Renewals

[Ann H]

That's what I was thinking as well, but how does that mesh with the rule that you can't have waiting periods before eligibility of longer than 90 days? It seems that one rule is contradicting the other ...

The open enrollment period is just for qualifying events, like those who did not enroll when they were first eligible but want to hop on the plan later. The new-hire waiting period of 90 days is for those folks who are first eligible by reason of new hire.

By the way, the new 90 day waiting period is brutal. It is exactly 90 days, not 3 months, and not "FOMF" (First of the Month Following) 90 days. So, if you want all employees in your group to have an effective date of the 1st day of a month to avoid partial month billing problems and potential double coverage with their current plan, you have to give them a waiting period of First of the Month Following 60 days.

 

[stuy119]

Great. (That was heavy sarcasm, in case you couldn't tell)

 

[ctg]

Not certain if this is the proper thread...but here goes.

With one of our areas big carriers implementing a rate increase on IFP April 1st, I'm getting a lot of inquiry about alternatives. Comparable plans can usually be beat premium-wise with another reputable although not-as-big carrier. Second carrier claims to have a 12 month rate guarantee.

I think we all expect a premium spike for plans on 1/1/14. As I understand, all plans will have to move to an Obamacare plan at some time in 2014-more than likely at the anniversary date. What are your opinions about holding off until later in the year to keep the guaranteed, lower rate for the majority of the year avoiding the "Obamarate" for 10 or 11 months?

I assume the company bean counters have already thought this out and are prepared. Will they simply increase premiums on new policies at some point or in the last quarter in 2013 to offset? Can they simply scrap the policies written in 2013? Am I naive to believe they will hold to a rate gaurantee?

I'm interested to hear what you reform guru's think. (And everyone else as well)

 

[Yagents]

Assurant is the only one (right now) that will not change rates until Dec 2014, with a new policy effective date after 4/1/13. I plan on offering this to my NON grandfathered higher income clients. Their rates are competitive in AZ and FL, don't know about IA

 

[bluemarlin08]

I spoke with my Blue rep today regarding this issue. He said rates are guaranteed for a year then at renewal one will need to switch to a new policy and new rates. I asked the question regarding buying late in 2013 and if he thought they would increase rates third quarter, possible, he didn't really know.

 

[ctg]

One of the things I hate about Obamacare (one of many) is that we can't advise our clients because no one knows what is going to happen.

All we can say is "...as I understand so far" "this may change" "the insurance companies say that..."

I simply don't want to advise a client to take plan A and then have things change down the road where plan B is better for them.

 

[somarco]

Other than free health insurance, and even that has drawbacks, I see no improvement for individuals under Obamacare.

 

[AllenChicago]

I spoke with my Blue rep today regarding this issue. He said rates are guaranteed for a year then at renewal one will need to switch to a new policy and new rates. I asked the question regarding buying late in 2013 and if he thought they would increase rates third quarter, possible, he didn't really know.

Does anyone know if the IRS will impose partial-year tax/penalties on taxpayers who didn't have a Qualified Health Plan for all 12 months of 2014?
-ac

 

[Ann H]

A large GA in town (Black Gould) released a newsletter today that had this notice regarding Humana's intent to change their IFP plans to PPACA compliant plans on the RENEWAL DATE in 2014.

It is Humana's intent that your clients who purchase new plans with 2013 effective dates, or in-force members who renew their HumanaOne plans in 2013, can continue on their current plans, at current rates, until their renewal dates in 2014. At that time, their plans will be modified to comply with the Affordable Care Act (ACA) benefit requirements.

In addition, while it is Humana's intent not to change rates within the first 12 months of purchase, compliance with the healthcare reform law may necessitate changes to member premiums within the first 12 months. Therefore, they will be removing the 12-month rate guarantee for all plans - where applicable. This change applies for any policy written with a 2013 effective date. Marketing materials have been updated to reflect this change.​

 

[AllenChicago]

Will Humana (or any other company) who maintains current benefits until the policy's 2014 renewal be subjecting the insured to a partial-year IRS penalty-tax for non-compliance with the ACA?

For example, a likely question on tax year 2014's form 1040, 1040EZ, etc..

"Did you have a Qualified Health Plan (see irs code 32.11.7.sub-e) for all of 2014? If "no", see the table in appendix-S to calculate your non-compliance penalty/tax."

ac