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  • Blue Shield Small Group (April, May, June 2011 rate pass details)

    In February Blue Shield announced a second quarter rate pass for new small group business. Blue Shield also delayed the rate increase for small groups otherwise scheduled to renew in the second quarter.

    Today Blue Shield has an update for your impacted small group clients.

    Second Quarter Renewing Clients – Changed Renewal Period

    For small groups currently scheduled to renew in the second quarter of 2011 ONLY, Blue Shield is extending their current contract/policy term and changing their renewal period. Your second quarter renewing clients will receive an endorsement/amendment that will extend their 2010 contracts/policies from 12 months to 15 months, under the current contract rates. So this year, they will renew in the third quarter and not in the second quarter.

    • Members will be able to add dependents in their original renewing month as well as the extended renewal month.
    • At their original open enrollment, employees may add or cancel dependents (including adult age dependants), late enrollees may enroll and members would be able to cancel their coverage.
    • Group level changes (including plan changes) will be deferred to their new open enrollment 7/1, 8/1, or 9/1.  Members will be able to change plans at this time.

    2011/2012 Second Quarter Renewal Schedule

    Original 2Q 2011 renewal month Revised 2011 renewal month New 2012 renewal month*
    April July April
    May August May
    June September June
     

    2011/2012 Third Quarter Renewal Schedule

    Original 3Q 2011 renewal month 2012 standard renewal month 2012 renewal month – 9 month option**
    July July April
    August August May
    September September June
     *Groups may opt for a new 12 month contract upon request
    **Third quarter renewing groups may opt for a 9 month contract upon request

     The renewal contract/policy that is offered to these groups in 2011 will be for a term of 9 months, returning them to their original renewal month in 2012. However, the group may elect to receive a 12 month renewal contract/policy in 2011 and have their renewal month change permanently to the third quarter. If your clients would like to opt for this, please contact RBG who will notify Blue Shield of your clients’ election prior to their 2011 renewal date.

     Third Quarter Renewing Clients – Renewal Period

    Small groups that already have a renewal date in the third quarter of 2011 will be offered a 12 month contract/policy. However, in 2011 ONLY, third quarter renewing groups may elect to receive a 9 month contract/policy and have their renewal month change permanently to the second quarter in 2012. Groups must notify Blue Shield of their election for a 9 month contract/policy prior to their 2011 renewal date. 

    Second and Third Quarter New Business – Renewal Periods

    New small group clients with effective dates in the second and third quarter of 2011 can receive a standard 12-month contract/policy. However, new second quarter accounts may elect to receive a one-time 15-month contract in 2011 only, and new third quarter accounts may elect to receive a one-time 9- month contract in 2011 only. New second and third quarter accounts must affirmatively select their preferred 2011 contract/policy period. Please contact your RBG representative who can provide you with the contract/policy term election form when it’s available.

    Groups with Vision Coverage

    Please note that groups with Vision Standard, Vision Plus, or Vision Deluxe plans have an initial contract term of 24 months.

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