Consider Changing Your Company’s Renewal Month

The Michigan Business & Professional Association (MBPA) and the Michigan Food & Beverage Association (MFBA) are notifying members that they may want to consider changing their Plan year date and Renewal date as a result of Health Care Reform’s (ACA) provisions on how carriers can rate the small group market. 

You currently have the option to change your plan year date (found within your Summary Plan Description – SPD) to a more favorable date that delays the negative impact of rating factor changes until your renewal date in 2014. We are encouraging members to adjust their plan year date to the latest possible date such as a 12/1 plan year, and coordinate with your insurance carrier such as Blue Cross Blue Shield of Michigan to change your renewal date to 12/1. This will give you several more months of non-reform products (and possibly lower costs vs. new reform products). The MBPA / MFBA encourage you to speak with your health insurance agent about your options today.

What are the Blues doing? Currently BCBSM is offering small group customers with a current renewal month between January and October the opportunity to change their renewal month to November or December 2013. NOTE: This option is not available for groups currently enrolled in a Blue Care Network HRA, Healthy Blue Living or Healthy Blue Living Rewards product. If you choose to change your renewal month, you will need to submit a signed renewal month change form prior to July 15, 2013 (Important: should this date be extended you will hear directly from the Blues). Your health insurance agent will work with you to coordinate your request with BCBSM.

Beginning January 1, 2014 the Affordable Care Act (ACA) provisions will impact how carriers can rate their small group members.

Key ACA provisions impacting rates (on and off the Exchange / Marketplace) are:

1. Guarantee Issue

2. Rating standards (age, tobacco use, geography, family size, removal of industry factor and CCF max)

3. Allowance for member level rating

4. State specific rating regions

5. Taxes & Fees

What this means – By renewing in November or December 2013, you may be able to delay the impact of rating factor changes until your renewal date in 2014.

Remember as a member of MBPA or MFBA the required SPD’s are free as a part of your annual membership dues. Contact our office today for assistance with your company’s Summary Plan Description.