GROUP UPDATE
51-100 groups can extend their time in large group plans with the 2015 Advance Option
Highmark is offering groups with 51-100 total employees the option to end their current contract and begin a new contract Oct. 1, 2015, to extend the amount of time they can keep their existing large group plan.
Why we are offering this option
The Affordable Care Act (ACA) states that all groups of 1-100 will be defined as small groups starting January 2016. Highmark is offering groups the option to end their current contract and begin a new contract Oct. 1, 2015, so they can keep the plan they know and trust through Sept. 30, 2017.
For many groups, keeping their current plan as long as possible is the best option for their employees.
How it works
Highmark is allowing groups with 51-100 total employees to end their current contract and begin a new contract Oct. 1, 2015, which allows them to grandmother their plan on their Oct. 1, 2016, renewal, and keep that plan until Sept. 30, 2017. At that point, they must switch to a small group ACA plan.
Please note the following important details:
- By re-contracting with Highmark, these groups can keep their current plans, but all benefits (such as deductibles, coinsurance, accumulators, etc.) will reset as of Oct. 1, 2015.
- Highmark requires that your client confirms, in writing (via a form provided by your Highmark client manager), that its ERISA plan year and newly established policy year coincide. Prior to completing the form, your client will need to consult with his/her legal and tax consultant. See page 3 of the Frequently Asked Questions for more information.
Special offer for to keep current rates
By electing to re-contract with Highmark for an Oct. 1, 2015, effective date, the following groups with 51-100 total employees can keep/match their current plan (resetting their benefits as of Oct. 1) and keep their current rates:
- July-December 2015 renewals
- July-September 2015 new business (i.e. keep their recent Highmark sold rates for the Oct. 1 re-contract)
Please note: Additional information will be forthcoming for January-June 2015 existing clients.
Please see these Frequently Asked Questions for more information.
If you have any questions, please contact your Highmark client manager.
|