Blue Alert! Presentation of Taxes and Fees Will Be Updated for 2016 Quotes and Groupwide Changes

Taxes and fees have always been part of the premium charged but were displayed separately on quoting materials. Now certain federal and state taxes and fees will be included in the section that lists premium and stop-loss fees for medical, prescription, dental and vision coverage.

This new presentation follows similar changes to the 2016 renewal packages that we told you about in a recent Blue Alert.

When will quotes and groupwide changes show the new display?

Effective date                                                                Which display?                          

Before group’s 2016 renewal month                                    Current display: Taxes are shown separately from premium and stop-loss fees.
   
Effective as of the group’s 2016 renewal month                    New display: Only the total premium or stop-loss fee is shown.

                                                                                        Note: For self-funded groups with stop-loss coverage, the display will still show the Michigan Claims Tax on a separate line.

More information on 2016 quotes
You should know that:

   * The new display will apply to quotes effective as of the group’s 2016 renewal month.
   * Disclaimers in 2016 quotes have also been updated.
   * Self-funded groups with stop-loss coverage will continue to display the Michigan Claims Tax as a line item that is separate from the stop-loss fees.

New business quotes effective as of Jan. 1, 2016, will also use the new display, with one exception:

New business quotes for experience-rated groups with 100 or more enrolled contracts and self-funded groups with 50 or more enrolled contracts will continue to show a separate column for taxes and fees that are included in the     premium. This display will be shown for groups that are new to Blue Cross Blue Shield of Michigan and Blue Care Network, as well as established groups who are adding a line of business or adding 33 percent or more in contracts to their plan.

Note: Quoting tools will be updated in time for 2016 quoting.

For more information about 2016 quotes and groupwide changes, please refer to this talking points document.

Note: The online Health Insurance Taxes and Fees Estimator will be updated in the near future. It will show a total of the estimated taxes and fees included in the premium.

Questions? Contact your Blues sales representative or managing agent.