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  • Anthem Blue Cross of California – October 2010 Small Group Rate Action

    Anthem Blue Cross has announced their October 2010 Small Group medical rate action. After a year of new business rate passes or moderate increases, Anthem Blue Cross will again have just a modest increase for new business rates in October 2010.

    The total average quarterly increase is 2.8%.


    Please note that these rates are for Small Group only. The 51-99 EmployeeElect and Small Group mental health parity compliant plan rates will no longer match small group rates. This is due to Anthem Blue Cross’ compliance with the Mental Health Parity Act, effective July 1, 2010. 


    Here are the breakdowns:

    • EmployeeElect PPO plans will see a new business average increase of 2.0%
    • EmployeeElect HMO plans will see a new business average increase of 1.5%
    • EmployeeElect CDHP plans will see a new business average increase of 7.0%


    • EmployeeChoice plans will see a new business average increase of 3.6%
    • BeneFits plans will see a new business average increase of 1.2%

    In addition, there will be no rate or benefit changes for Small Group Dental, Life and Vision products.

    Important Healthcare Reform Benefit Changes


    Anthem Blue Cross has updated their benefits to comply with federal and state requirements, including applicable provisions of the recently enacted federal healthcare reform laws.

    The following benefits have been updated to comply with the law:

    • Removal of Lifetime Maximum on PPO plans
    • Removal of Annual Dollar Maximums
    • Preventive Care will now be covered at 100%

    Grandfather Status:

    • Effective October 1, 2010, Anthem Blue Cross will be making all of their EmployeeElect plans eligible for Grandfather Status
    • The EmployeeChoice and BeneFits portfolios, as well as the Indian Tribes plans, will not maintain Grandfather Status

    Specialty Product Discounts:
    Anthem Blue Cross has lowered the rates on their most popular Dental Blue Gold Plus 100-80 plan by 8.5% in April…combine that sale with $25,000 of Life and the group receives an additional 6% off the rate for a total savings of 14.5%.

     And don’t forget the 1% RAF savings when a group buys at least $25,000 of Life coverage (down to a .90 RAF). In many cases, the 1% RAF savings can cover the entire cost of the life premium.

    RAF Promotion Update:
    Anthem Blue Cross is continuing with their current RAF promotion program through December 15th effective dates:

    Groups with 6 or more enrolling medical subsribers with a renewal of 1.06 or less (with their current carrier) will receive an automatic .90 RAF.

    There is one notable change for PEO groups:

    Anthem Blue Cross will include PEO groups with 15 or more enrolling medical subscribers in the fourth quarter (assuming they meet all other eligibility requirements.)

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