Smart Benefits: With More Premium Rebates Coming, Are RI Nonprofits Next?

Monday, June 15, 2020

Sam Slade, Contributor

 

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Sam Slade, Managing Director of The Hilb Group

With COVID-19 causing delays in elective and non-emergency services and fewer visits to doctor and dentist offices, premiums are exceeding claims for the year. The surplus drove for-profit UnitedHealthcare to announce in early May that it would credit between 5% and 20% of fully insured and individual health plan premium costs for June.

The second-largest insurer Anthem followed suit, stating this month is would provide $2.5 billion in premium credits and other financial assistance to individual and employer customers, providers and partners.

And now some non-profits have gotten on board, among them:

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Blue Cross Blue Shield of Michigan and Blue Care Network recently announced it would return more than $100 million to fully-insured small group customers and 2019 individual plan members. The company will issue employer relief on July premium invoices and will continue to monitor claim trends that could affect potential relief for larger group customers and 2020 individual health plan members.

Priority Health, also in Michigan, is offering financial support to members and small group employers in the form of 15% premium credits issued in June and July, with large, fully funded employers having the opportunity for credits in the fourth quarter after the total amount of excess funds available is determined.
Premera Blue Cross in the Pacific Northwest said it will provide up to $65 million in premium relief funds and premium rebates in the next few months to more than 200,000 of its commercial and individual customers across Washington and Alaska. The relief for employers will be applied to the August billing cycle.

As the trend to provide premium relief in one form or another continues nationally, the question locally is whether health plans in Rhode Island will join in. So far, United is the only local health plan to announce any program for health plan rebates. While dental premium rebates have been announced by several local carriers, including United and Blue Cross Blue Shield of Rhode Island (BCBSRI), on the health plan side, Tufts Health Plan, BCBSRI and Aetna seem to be taking a wait and see approach. 

While employers wait to hear, Rhode Island carriers are expected to file their 2021 rate requests with the Office of the Health Insurance Commissioner on June 18th. In the absence of pandemic-related health plan rebates, it will be interesting to see if there will be low rate adjustments instead.   

 

Sam Slade is Managing Director, Employee Benefits, at The Hilb Group of New England, where he delivers consulting and brokerage services to local employers. He has extensive experience in all aspects of employee benefits, including underwriting, plan design, communications, compliance, and analytics, with a particular focus on alternative funding and self-insurance. Sam lives in South Kingstown with his wife and three sons.  

 

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