The Presidents ACA Fix – Not as easy as it appears

In late November, the Governor announced in the Department of Insurance and Financial Services official release http://www.michigan.gov/difs/0,5269,7-303–317016–,00.html that he will allow the President’s ACA fix on existing health plans in the State of Michigan.  This announcement allows carriers to decide if they are able to do this as the ACA plans are being implemented. 

If the carriers allow, small business can keep their coverage. The question becomes; is it feasible for the carriers to turn the ship around without negatively impacting rates? If not, it might be best for some small businesses/individuals to keep the new ACA compliant plans.

As of January 1, 2014 the ACA requires carriers to implement plans with minimal essential benefits and new underwriting requirements.  Many carriers have had this implemented as of October 1 for January 1 effective dates after many months of preparation.

The President announced Thursday, November 14, that he would implement a national fix, each state had the option to implement the delay in offering exclusively ACA compliant plans, thus allowing small business and individuals to keep their existing plans without being cancelled, if the carriers allow.  Numerous states are not allowing this. 

Many small businesses are already keeping their existing plans through 2014 when they changed their renewal dates to November or December, delaying ACA plans for 2014. Currently, there are several plans in the marketplace that delay ACA provisions for individuals as well.  The MBPA encouraged members to change their renewal dates in 2013 to delay any negative impact of the ACA.   

Blue Cross Blue Shield of Michigan and Blue Care Network announced that they will continue transitioning small groups and individuals into health plans that meet the benefit requirements of the Affordable Care Act instead of continuing current non-compliant plans. BCBSM allowed renewal date changes prior to the President’s change allowing members to keep their current plan through 2014.

Individuals can’t apply for subsidies if they remain in their non-reform plan, which could help reduce costs.

BCBSM made a decision to offer Keep Fit for 2014. Individuals currently enrolled in either our Keep Fit (PPO) or Personal Plus (HMO) plan can keep it through 2014.

BCBSM members who enrolled in a new, qualified health plan on the Marketplace, or through an agent, an HPA, or online is not affected by this. They have coverage beginning Jan. 1.

Those not enrolled in a new plan will be transitioned to a Keep Fit plan effective on Dec. 31, 2013. They will receive a letter with their options to stay covered after their plan closes. They can accept this option simply by paying the premium bill they will receive in mid-December. Individuals who choose to stay in a non-reform plan are not eligible for subsidies.

BCBSM members also have the option to enroll in new products that are compliant with the Affordable Care Act and contain the full array of essential health benefits provided for by federal law until Dec. 15, 2013.

The MBPA’s goal is to keep you updated with the latest information which may impact your business. If you have any questions, please call your Membership Service Representative at (888) 277-6464 or email us at info@michbusiness.org, we are here to Make Your Business Better.