Volume 7, Issue 2 • January 16, 2013
|► Blue Alert
Temporary freeze on early renewal and quote requests, plus the latest on ACA taxes and fees
Early renewals are generally requested by key and large group customers six to 10 months in advance of their renewal date. Renewal packages are normally issued 120 to 90 days prior to the group’s renewal date.
Group Underwriting will reinstate early renewal and quoting once the 2014 base rate tables are available, which is targeted for August 2013.
Taxes and Fees
Federal Insurance Premium Tax
Comparative Effectiveness Fee
Here are some important facts about the fee:
BCBSM and BCN will make the first payment for the comparative effectiveness fee on July 31, 2013, for fully insured business without prior collection from our individual and group customers. This quarter payment will be absorbed by current administrative fees as systems and processes are modified internally to support collection of this fee effective 2014 and beyond. This is a one-time, isolated occurrence.
The plan sponsor, usually the employer, is responsible for paying the fee directly to the IRS for self-insured business. We will provide account managers with job aids and materials to assist them in discussions about the fee with their ASC customers.