RE:ImportantRenewalInformation. NewGuidancefromFederalGovernment.
DearValuedGroup,
Non-ACA Compliant Plan Extension
Recentguidancefromthe Centers for Medicare & Medicaid Services (CMS) indicatesthatwearenowabletoextendhealthinsurancepoliciesthatdonotmeettheAffordableCareAct’s(ACA)coveragestandards to policy years beginning on or beforeOctober1,2017, provided that all policies end by December 31, 2017. Thismeansthatexisting transitionalpolicies(thatdonotcomplywithACAprotections)canbemaintainedthroughDecember2017.
Howthisaffectsyourpolicy:
In order for your group to take full advantage of the new federal guidance, Anthem is pleased to provide you
with an extended rate offer. The enclosed renewal benefits and rates for your current non-ACA compliant
planwill become effective during your group’s 2016 fourth quarter renewal month and will continue through December 31, 2017. Based on your renewal month, your extended offering is as follows:
October / 15 months / October 1, 2016 / December 31, 2017
November / 14 months / November 1, 2016 / December 31, 2017
December / 13 months / December 1, 2016 / December 31, 2017
*For groups that are age/sex rated, Anthem uses an age/sex rating method where ages fall within a certain band/bracket. Rates will be updated when employees and/or their spouses have birthdays, which take them to the next age band/bracket.
ERISA Notations:Please note this extended rate offer will not affect the group’s twelve (12) month ERISA plan year. The group will be responsible for ensuring that its plan documents and required filings are compliant with ERISA, including providing any required open enrollment periods.
Your Next Steps:
Option 1: Do nothing, and keep your current non-ACA benefits with the enclosed rates through
December 31, 2017. Please note that you have the option to cancel your group contract at any time
prior to December 31, 2017 upon 30 days’ prior written notice.Ifwedonothearfromyou,Anthemwillautomaticallyrenewyourgroupinitscurrentnon-ACAplan(s).
Option 2: Renew to an ACA Plan Option. If you want to switch to an ACA-compliant plan, please work with your broker to notify us at least 25 days in advance of your renewal date to ensure we have time to get new ID cards to your employees in a timely manner.(It is important to note that Anthem is unable to offer an extended rate for ACA plans and once you choose to enroll in one of our ACA products, you may not return to your previous non-ACA plan.)
Option 3: Waive the Non-ACA Compliant Plan Extension and keep current renewal month. Please complete waiver section on page 2 of this letter and have your broker submit it to Anthem no later than your 2016 renewal date.
Specialty Products: Dental, Vision, Life and Disability
By connecting dental, vision, life and disability benefits with our health plans, Anthem is delivering a completely integrated clinical and administrative experience resulting in more comprehensive care
for members. If you wish to add dental, vision, disability or life insurance, call your broker for a quote.
Please note:
If your coverage has been cancelled, please disregard this renewal notice. If you have made recent changes to your policy, those changes may not be reflected in the rates presented in this notice.
Waiver of non-ACA compliant Plan Extension
Company/Employer NameMedical Group # / Dental Group # / Life & Disability Group # / Phone #
By signing below, I represent that: I am an authorized representative of the company/employer, and that the employer voluntarily elects to waive the non-ACA compliant plan extension.
The employer understands and agrees that waiving the non-ACA compliant plan extension may not be beneficial for every plan, that it has had an opportunity to consult with legal, tax and benefits advisors of its own choosing, and that Anthem is not requiring the employer to waive the extension.
Again, thank you for the opportunity to serve you. We look forward to another year of helping improve the lives of your employees and their families.
Sincerely,
The Anthem Underwriting Team
Cancellation notice requirements
You may terminate your group contract, without cause, by giving written notice of termination to Anthem at least 30 days before the effective date of termination. If your contract is terminated, the group shall be liable for all premiums due to Anthem up to the date of termination. Unless timely notice of termination is given, your group contract shall be automatically renewed on each anniversary date upon the payment and acceptance of premium.
Anthem Blue Cross and Blue Shield is the trade name of Community Insurance Company. Independent licensee of the Blue Cross and Blue Shield Association.
® ANTHEM is a registered trademark of Anthem Insurance Companies, Inc. The Blue Cross and Blue Shield names and symbols are registered marks of the Blue Cross and Blue Shield Association.
OH4thQTRRATE 05/16