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BCBS Launches Financial Relief Program for 51+ Insured Customers

BCBS of TX announced a COVID-19 Economic Response Program designed to help new and existing fully insured employer group customers during the national emergency. They are offering premium deferrals to new and existing fully insured customers and a two-year rate guarantee to new fully insured customers

The programs outlined below are available to most groups offering fully insured health plans with 51+ enrolled employees. They are not available to groups with payments that are 30 days past due and/or self-funded, minimum premium, community rated small group, Blue Balance Funded, student health, ADM, MEWA/PEO, association health plan, retrospective premium accounts, private multi-carrier exchange, and prospective retention account groups.

Premium Deferral Program for Existing Insured Customers

  • Available to Existing Groups.
  • Decision Deadline: Aug 15, 2020. Opt-In form must be submitted by deadline.
  • Option to defer 50% of July billed medical and dental monthly premium. Deferral applied as a line item credit on a future billing statement. E.g.: The credit will appear on the Sep bill if the opt-in is processed in July, otherwise the creit will appear on the Oct bill.
  • Recoupment: Spread evenly across 12 monthly invoices in 2021 as a line item charge (regardless of anniversary date). Impact is approximately 4.2% additional premium in 2021. E.g.: Client X’s 2021 monthly invoice line item deferred premium charge = $240,000/12 = $20,000/month.

24-Month Rate Guarantee for New Insured Customers

  • Available to new customers effective from Jul 2020 through Jan 2021.
  • Option for a 24-month rate guarantee for medical and dental—two consecutive 12 month plan years at the same rates.
  • The decision and criteria will be indicated in the additional provisions of the BPA, which must be signed prior to the effective date.
  • Employers accepting a 24-month rate guarantee are not eligible for premium deferral.

Premium Deferral and Second Year Rate Cap Program for New Insured Customers

  • Available to new customers effective from Jul 2020 through Jan 2021.
  • Option will defer 30% of the first three months of medical and dental premiums and limit renewal rate increases to a maximum of 9.9% for medical and 5.0% for dental.
  • Premium deferral line item credits will appear on the monthly invoices for months 2-4.
  • Recoupment charges will spread evenly over the invoices for the last eight months (months 5-12) of the policy year.
  • The decision and criteria will be indicated in the additional provisions of the BPA, which must be signed prior to the effective date. Exceptions will be made for Jul and Aug 2020 effective dates to process and sign a revised BPA.
  • Employers electing this program are not eligible for the 24-month rate guarantee program.

Read the BCBS Program announcement for more information. BCBS will publish an FAQ soon.

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