CA SB 1431 Update (May 21)

I just wanted to provide an update on CA SB 1431 which deals with self-insured group health plans. See my previous blog post:

California SB 1431 To Limit Self-Funded Small Group

California SB 1431 passed appropriations by a 4-2 vote on May 14th, 2012. On May 16th, a second reading was conducted and the bill was ordered to a a third reading which has not yet been scheduled.

Stay tuned to this blog for updates regarding the status of CA SB 1431 (De Leon).

Dave
www.an-insurance.com

Feller-Freed Open Enrollment Period 2012

Anthem Blue Cross has announced the 2012 Feller-Freed open enrollment period. For those eligible under the Feller-Freed settlement, the following applies.

Open enrollment will be from April 20,2012 to June 4, 2012. During this period, anyone eligible for a plan change under Feller-Freed may make the plan change election to a new plan.

Anthem Blue Cross subscribers will receive notification with election options in the next few days. This applies to any Feller-Freed settlement beneficiary who has a rate increase on their PPO Share plan. Those with no increase or a decrease are not eligible to change plans during this open enrollment.

Due to the announced closure by Anthem Blue Cross of certain plans originally part of the Feller-Freed settlement (Clear Protection Plus 5000 and Core Guard 7500/10000), other plans have been substituted by Blue Cross to arrive at the required number of available plan choices.

Choices include:

*Certain PPO Share plans (Closed) depending on original plan
*PPO Share 1000*, 3500, 5000, 5000* and 7500
*HMO and HMO Saver
*Individual Select HMO
*Core Guard Plus 750, 3500 and 5000 PPO plans
*Clear Protection Plus 3300 PPO
*Premier Plus 5000 and 6000 PPO
*SmartSense Plus 6000 std drug and 6000 with drug upgrade

As always, members affected by the Feller-Freed settlement should contact their agent of record regarding assistance with plan changes. If you do not know who your agent of record is, contact Anthem membership at 800-333-0912 and they will provide you with contact information for your agent.

Anthem Blue Cross members who are 'in house' accounts and purchased their PPO Share plan directly from Blue Cross without an agent may contact Anthem Blue Cross directly or may seek assistance from an independent agent. I require an AOR (agent of record) change letter before I will assist with any plan changes for 'in house' members.

Dave
www.an-insurance.com

* both the PPO Share 1000 and 5000 have dual registration with both the CDI and DMHC. Both registration change options may be available for these specific plans.

Feller-Freed 2012 Anthem Blue Cross Settlement

2012 Feller-Freed plan change election period has not been announced yet by Anthem Blue Cross. They anticipate more information by end of week and I will update blogs accordingly.

Also, I am waiting for an update on which plans will be available during the next Feller-Freed open enrollment (2012) as there have been some changes. Three of the Feller class plan change options will be closed on 5/1 and that would be the absolute soonest possible Feller election period although it probably will be later than May.

Anthem will likely not allow any Feller beneficiary to enroll in a closed plan coming from at closed plan so you can pretty much rule out the following plan choices from the settlement list (exhibit F of settlement agreement): CoreGuard Plus 10000, 7500 and Clear Protection Plus 5000. I am guessing Anthem will replace those options with three other plans but we have to wait and see.

As you may be aware, Serencsa settlement beneficiaries are working with a 5/1/12 cycle in conjunction with the 5/1 rate change. Feller-Freed works differently.

To recap, settlement beneficiaries for Feller-Freed are those current Anthem subscribers who were enrolled on one of four PPO Share plans in September 2009 when those plans were closed (Share 500, Share 1000, Share 1500, Share 2500). The settlement (Feller-Freed) allows eligible Feller-Freed beneficiaries an annual option to move to a selected group of open (currently sold) health plans with Anthem Blue Cross with no medical underwriting. In addition, Feller-Freed provides those still on closed Share PPO plans with a 2% discount on future rate increases until 2014.

As soon as I get solid information regarding 2012 Feller-Freed rules and plans, I will let you all know.

Take Care and God Bless!

Dave
www.an-insurance.com

Anthem Blue Cross CA July 1 2012 Individual "Tweener" Rate Change

If you are receiving the May 1 2012 rate change, Relax! This rate change does not apply to you.

The July rate change is only for subscribers currently enrolled as "Tweeners". Tweeners are those who fall in the second bucket of Anthem Blue Cross individual health plans in California. A 'tweener' is any subscriber who purchased an Anthem Blue Cross individual & family health plan between 3/23/10 and 9/23/10. Tweener plans are not affected by the May 1 rate change and will see their rate change on 7/1/12. Tweeners are also non-grandfathered.

With the 60-day notice rule in effect, Tweeners should receive rate change notifications around May 1, 2012. Many tweeners will have Serencsa transfer option rights as Serencsa cutoff ended on 9/23/10.

Dave
www.an-insurance.com

One more thing: if you are reading this or any of my blog posts and you are not on an-insurance.blogspot.com main url or you don't see "Dave Fluker's California Health Insurance Blog" as the title, you are reading stolen content that is being duplicated on wordpress blogs illegally. I sometimes make changes or delete blogs and the copycat blogs don't reflect those changes or deletions.

Dave

Anthem Blue Cross CA May 1, 2012 Rate Change Update - Incorrect Rates

Anthem Blue Cross CA announced a rate change on individual & family plans effective May 1, 2012. Affected members received a notice of the rate change and new rate for 5/1.

Some Anthem Blue Cross members (but not all) received an insert indicating that the new May 1 rate quoted was incorrect and and would be lower than the rate quoted in the letter.

In fact, all rate increases sent out to all affected Anthem Blue Cross members show incorrect rates for May 1, 2012 and all rate increases will be lower than the rate increase that was quoted in the letter.

Anthem will be sending out new letters later this month which will indicate the corrected rate change for May 1.

This rate change includes age change which are no longer assessed on the birthday but instead at the annual rate change cycle.

Please be patient as no one including Anthem membership nor your agent currently has the corrected rates and we don't anticipate having correct rates until later in the month of March.

I should also mention that all online quoting services including Quotit and Norvax do NOT have the correct may 1 rates. All online quotes are currently using old rates and won't be updated until the full rate correction is provided.

Dave
www.an-insurance.com

Blue Shield CA To Reduce April Premium On DMHC Settlement

Blue Shield of California has announced to agents that they will be providing a premium reduction (March 1 increase) for those subscribers currently seeing a March 1 rate increase on their DMHC-registered health plans.

Instead of a regular premium increase reduction (say that three times fast) Blue Shield of California has agreed instead to pay the overall reduction at one time. Subscribers currently on DMHC-registered Blue Shield plans will receive a premium credit for the month of April, 2012 on average approximately 62%.

The rate increase goes into effect March 1, 2012 so those on DMHC-registered plans need to make sure and pay the full March premium. Letters regarding the April premium credit have been sent to affected subscriber.

Those on DMHC-registered plans who are currently in their initial six-month rate guarantee period will receive the premium credit the first month after the end of the rate guarantee period.

DHMC-registered plans include:

*Shield Spectrum 5500 PPO
*Access+ HMO
*Access+ Value HMO

This premium credit only applies to underwritten health plans and does not apply to HIPAA plans nor Conversion plans.

Dave
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