Rate Reductions for Anthem BC Individual Plans

Wow, Anthem Blue Cross is reducing its rates for some individual plans!!!!  Below is a statement released to brokers from Anthem.  If you are one of our individual clients be on the look out.  We do not know which plans will be affected yet, but when we find out we will send you an update.  If you find out first, please send us the information.  Here is s snippet of the notification...

March 26, 2013
Based on agreements with the California Department of Managed Healthcare and the California Department of Insurance, our average Individual rates will be reduced.
This week, we will begin notifying the affected members of a potential rate reduction with a message on their upcoming bills. In addition, members that chose to receive email communications will receive an email communication about the rate reduction. We are still working to finalize and file the new rates, and will give you additional information as soon as possible. We expect the new, lower rates to be updated in our systems for our May billing cycle, and members may receive refunds by the end of June.

As always, we at Ansa Insurance Services try hard to bring you the information that you need.  If you would like information on a specific topic please let us know what it is at info@ansainsuranceservices.com .  You can also reach us at 714-680-5900.

Be Prepared - $20 Billion in New Taxes for Health Care

Be prepared, starting for some employer groups with 51+ employees, you will start seeing your rates go up this year because of the health care law.  If your plan cycle extends into 2014 your rates for the months of 2014 in this plan year cycle will be prorated and dispersed over 12 months, some of which will be in 2013.  If your plan starts January 1, 2014 the new tax will start then.  If you are part of a small group employer sponsored plan or are on an individual plan, look for your rates to increase starting January 1, 2014.  The two new taxes will combine to raise about $20 billion for the first year and 19.3 for the second year and so on.  These taxes will be embedded in your health premiums.  You will not see the exact dollar amount you are paying for these two taxes.  The first tax is called the Health Insurer Tax and it is meant to help fund premium subsidies for certain individuals and families purchasing health  insurance from the exchanges.  The second tax is called the Transitional Reinsurance Tax and it is to help stabilize premiums and cost of high-risk individuals entering the individual market in each states health exchange. 

If you would like to receive a pdf of the exact rates each year for each new tax, please email us at angela@ansainsuranceservices.com and we will get you a copy.  You can also reach us at 714-680-5900.

Unions Upset Over Wal-Mart Selling Health Plans on Exchange

The Los Angeles Times reported on March 7th, 2013 that unions are upset at Wal-Mart for trying to   sell health plans to the public when the health exchange, known as Covered California, opens up in October of this year.  The unions feel that it is wrong for Wal-Mart to profit  on the sales of health plans to the uninsured and under insured when they do not offer, what the unions feel are, those same quality benefits to many of it's own employees.  Wal-Mart is just one of many retail stores that are trying to set up selling insurance plans through Covered California for a profit of $58 per member for every successful application.

I understand the unions complaint, but the bigger picture here is that the "assisters" that will be selling these plans have no incentive to make sure they guide their applicants in the right direction.  If they are getting paid just to sign someone up and they get to walk away from the applicant, they will sign them up on the easiest and fastest plan, not checking to see if their doctor is in that plans network or if their drugs are part of the formulary.  There is no incentive to sit with an individual and make sure they fully understand the products that are available.  To make matters worse the "assisters" will be receiving one days worth of training.  Most wont fully understand what they are selling to begin with.

Insurance is already confusing for most people anyway.  This will make it worse!  If you know anyone that might be interested in purchasing a plan from the exchange, please send them to a broker that can fully explain what they are getting and how it will work for them before they need to use it and are stuck. 

Governor Brown Siding with State Republicans

It appears that when it come to expanding the states medicaid program, known as Medi-Cal, Governor Brown is more aligned with state Republicans than with many in his own party.  In an article by Michael Mishak in the Los Angeles Times from March 9th, Governor Brown worries that expanding the states Medi-Cal program will cost the state too much in 2020 when the federal government reduces the amount it funds to 90%.  The Governor is also concerned that the federal government could pull its funding sooner.  The states Legislative Analyst's Office estimates that the state could be on the hook from anywhere between $300 million to $1.3 billion a year.

To read the full article click on HERE.

If you would like to receive a newsletter highlighting the changes coming from the PPACA please email me at angela@ansainsuranceservices.com and we will get you added to the newsletter.

Small Business Exchange - SHOP

Health and Human Services ruled this week that the exchange for small business will be up and running by January 1, 2015.  What?  January 1, 2015! If everyone is mandated to have insurance by January 1, 2014 why then are they waiting until 2015?  We know employers employing less than 50 full time equivalent employees are not mandated to provide health insurance benefits.  But lets face it most small employers do provide insurance to their employees.  The ones that don't often don't because they can't reach required participation levels to satisfy the insurance carriers.  The SHOP as it is known is meant to bridge that problem by not requiring minimum participation.  Simply put, an employer can pick a plan and offer to pay a percentage of that plan and any employee that wants can then sign up for it.  If he employs 10 employees, under the current rules, at least 8 would have to sign up under his plan.  With the SHOP as few as 1 employee could sign up.  I do not know if this will affect California or not.  Last I heard our SHOP was still on course to be up and running by 2014.  I will keep you updated on the status as I find out more. 

If you are interested in finding out more about the health care law and how it will affect you, please contact us at 714-680-5900 and we can let you know our next scheduled event.  You can also email us at angela@ansainsuranceservices.com .