BCBSM allows extension for employers with 50-99 employees

Blue Cross Blue Shield of Michigan issued the following statement regarding the transition of group customers with 50 to 99 employees into ACA-compliant plans:

“Changes to ACA regulations announced in March gave states the option to delay, for employers of 50 to 99 employees, their transition into the small group ACA-compliant insurance plans until their plan renewal dates in 2017,” said John Dunn, vice president for Middle and Small Group Business at BCBSM.

“Blue Cross Blue Shield of Michigan will allow our group customers with 50 to 99 employees to delay their transition into the new small group market, thereby keeping their current health plan. These customers now have two options – they can continue with their existing group ACA-compliant plan or choose to transition into an ACA-compliant small group plan. Blue Cross will continue to work with our customers and their insurance agents over the next two years to evaluate their needs and determine the best course of action for their employees and business.”

The ACA defines a “small group employer” as having fewer than 51 full-time equivalents. On Jan. 1, 2016, the ACA regulations expand this definition to include all employers with fewer than 100 employees. This extension will be permitted for all employers with renewal dates through Oct. 1, 2016. After the extension period expires, all employers with 50 to 99 employees must offer small group ACA-compliant plans to align with the regulation, effective on their renewal date.

Please contact your health insurance agent for more details on this new update