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August 2010
Dear Business Partner:
As noted in the August 5, 2010 press release, Blue Cross Blue Shield of Massachusetts reached an agreement with the Massachusetts Division of Insurance (DOI) on premium rates for small businesses and individuals purchasing or renewing their health coverage between April 1, 2010 and December 31, 2010.
Under the agreement:
- Premium base rates for affected customers will increase between 0.4% and 12.9%. These new rates will be effective September 1, 2010.
- For customers who purchase or renew coverage between April 1, 2010 and August 31, 2010, we will not retroactively charge the difference between the premium rates approved in this agreement and the 2009 interim rates mandated by the DOI since April.
As a reminder, the DOI approved some of our PPO rates for the third quarter 2010, and we already took action to recalculate these plans. Any reference to rate recalculations in the remainder of this memo exclude the previously approved third quarter 2010 PPO plans.
Rates for New and Renewing Business
We have developed a process to update interim rates with final approved rates for new and renewing business with effective anniversary dates between April and September of 2010.
The details are summarized below:
| New Business: |
| Brokers will have the ability to quote new business using BlueQuote by Wednesday, August 11, 2010. |
| Existing accounts sold between April 1st and September 25. |
- We will update all new business accounts sold with effective dates from April 1, 2010 to September 25, 2010, to the approved final rate.
- Brokers who sold any new cases effective in September will be personally notified of the new rates. Accounts sold between April 2010 and August 2010 will receive a letter informing them of their new rates, and brokers will be copied on the letters. Accounts should expect to see the new rates within the next two billing cycles.
- Please note that BlueQuote will not be updated with the revised approved rates.
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| Pending Prospects with September Effective Dates |
For all pending prospects, we will be invalidating current quotes in BlueQuote with September effective dates. Existing census will be available for re-quoting. |
| Renewals: |
| Brokers will continue to have limited access to renewal transactions in BlueQuote until the beginning of September. |
| Rates |
BlueQuote will be updated with the recalculated rates for most accounts that have a renewal from April to September. This will include accounts' default renewals and any alternatives. Brokers will be notified as this occurs. |
| Timing |
The recalculations will occur over the next two to three weeks. The following provides a high-level timeframe:
- September renewals: August 9 - 13, 2010
- April to July renewals: August 19 - 23, 2010
- August renewals: September 2, 2010
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| Account Notification |
Accounts will be notified of their final approved rates by letter. Accounts should expect to see the new rates within the next two billing cycles (i.e., September and October), beginning with the bill due September 1, 2010. Accounts and subscribers will also receive an updated Evidence of Coverage that reflects the new rates. |
When are rates effective?
All rates will be effective in September, based on the anniversary date of a particular group.
Off-Anniversary Requests
If any account wishes to make an off anniversary downgrade, and has an anniversary date between April, 1st 2010 and August 31st, 2010, we will allow these changes based on Underwriting review and approval. Please keep in mind that the account's current anniversary date will NOT change.
We appreciate your continued support. For additional information on the Massachusetts 2010 rate review, visit our 2010 Rate Review Information Center.
Sincerely,
Larry Croes
Vice President
Commercial Market
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