Hi, XXXXXXX,
It?s been a while, but I hope you are doing well! You may or may not have heard that 2-50 group are going to be subject to community rating with the new Affordable Care Act in 2014 (Obamacare, PPACA, etc). The insurance carriers came to us approximately a month ago and gave us a spreadsheet of clients who will be affected negatively by this rating at their 2014 renewal. All but 8 of our 300 MMO clients will be negatively affected by the community rating and XXXXXXXXXX is one of those 292 clients negatively affected.
Community rating was created under PPACA to lessen the quoting spread ratio now in the market. Currently, a 65 year old male pays 5 times as much as a 19 year old male. The new system will lesson that margin to a 3:1 ratio. Thus, a 19 year old male (or a healthy group) will pay more and a 65 year old (unhealthier group) will pay less. Your company is considered a healthy group and will be subject to an increase in October, 2014 of 80+%. They actually said that our average renewal will be 83%. All major carriers are in the same boat so Anthem, UHC, Summa, etc have all given the same spreadsheets with their client lists affected.
Thus, one of the carrier solutions was to renew employers early to avoid this penalty until December of 2014. It hasn?t been long since your renewal, but I still think it makes sense for you. This will give us all a little extra time to see how the exchanges play out, PPACA in general, you can retain the plan you currently have, etc.
Having said all of this, MMO released the actual renewal to us today and needs a sign-off by SEPTEMBER 30, 2014 in order to give the early renewal option to all of their groups. Hence why I am emailing this today to get it into your hands.
This is probably pretty clear cut, but feel free to call me if you have any questions. If you agree to keep your rates flat through next December (of 2014), please sign the attached form and scan/send back to me personally.
Thanks,
XXXXXXXXX
It?s been a while, but I hope you are doing well! You may or may not have heard that 2-50 group are going to be subject to community rating with the new Affordable Care Act in 2014 (Obamacare, PPACA, etc). The insurance carriers came to us approximately a month ago and gave us a spreadsheet of clients who will be affected negatively by this rating at their 2014 renewal. All but 8 of our 300 MMO clients will be negatively affected by the community rating and XXXXXXXXXX is one of those 292 clients negatively affected.
Community rating was created under PPACA to lessen the quoting spread ratio now in the market. Currently, a 65 year old male pays 5 times as much as a 19 year old male. The new system will lesson that margin to a 3:1 ratio. Thus, a 19 year old male (or a healthy group) will pay more and a 65 year old (unhealthier group) will pay less. Your company is considered a healthy group and will be subject to an increase in October, 2014 of 80+%. They actually said that our average renewal will be 83%. All major carriers are in the same boat so Anthem, UHC, Summa, etc have all given the same spreadsheets with their client lists affected.
Thus, one of the carrier solutions was to renew employers early to avoid this penalty until December of 2014. It hasn?t been long since your renewal, but I still think it makes sense for you. This will give us all a little extra time to see how the exchanges play out, PPACA in general, you can retain the plan you currently have, etc.
Having said all of this, MMO released the actual renewal to us today and needs a sign-off by SEPTEMBER 30, 2014 in order to give the early renewal option to all of their groups. Hence why I am emailing this today to get it into your hands.
This is probably pretty clear cut, but feel free to call me if you have any questions. If you agree to keep your rates flat through next December (of 2014), please sign the attached form and scan/send back to me personally.
Thanks,
XXXXXXXXX
