Are you reminded of the huge rate increases due to Adjusted Community Rating (ACR) and the mad rush to stay on pre-ACR plans when you look at your Small Group 12/1 renewal block? This year it will happen again, but on a larger scale…eek! The definition of Small Group changes from 2 -50 to 2 -100 on 1/1/2016. Are you prepared? Take a look at some of the differences:
| 2-50 | 51-100 |
| Regulated Rates | Unregulated Rates |
| Minimums | Lower Lows |
| Maximums | Higher Highs |
| Guaranteed Renewability | DTQ pre-2014 |
Transitional Policy Relief allows you to renew “as is” outside of adjusted community rating. Currently, transitional relief for groups in the 51 to 99 market ends 10/1/2016. Meaning, any 51-99 group sold with an effective date later than 10/1/2015 will be forced on to a new ACR plan upon renewal. Groups (51-99) with a 10/1/2015 or earlier effective date will be able to renew their plans in 2016 on transitional relief, prolonging the movement to ACR. Some groups could see as much as 100% rate up when moving to ACR, talk about rate shock!
What is your strategy? If you don’t have a strategy already in place for your 51-100 block, we can help!
Contact your entire 51-100 block: Talk to your groups about shopping off-cycle (if need be) to take advantage of transitional policy relief. If you don’t show them all their options while there is still time, another broker will.
Show your clients UnitedHealthcare: Transitional policy relief may not be available through all carriers; however, it is offered by UnitedHealthcare. Move groups that are going to benefit from staying on a pre-ACR plan to a 10/1 effective date and lock in 10/1 rates. Select a multi-choice package with plans that will accommodate the group’s needs for the next 2 years with UnitedHealthcare. If the group likes their package, they can keep it! Don’t forget, UnitedHealthcare is offering a renewal rate cap based on paid premium vs. claims and broker bonus programs too!
Not all groups will benefit from transitional policy relief. Moving to a 1/1/16 effective date on an ACR plan might be a better option for some, but you must act now to weigh your options.
Don’t forget, we can also help with your 51 -100 groups that do not currently have coverage in place, but want to take advantage of pre-ACR plans before the play or pay fines go into effect next year.
Contact us today at 972-991-6500 while there is still an option for your group!