Anthem Small Group is getting tough on late payments
Everyone forgets to pay a bill every now and then, so what?
Suppose you are an Anthem small group employer and you receive your January 1, 2012 bill for your employee health insurance. California small group employers have always been accustomed to having a 30 day grace period past the due date to pay their bill and that has not changed. What has changed is the willingness of a carrier to extend the grace period for longer than 30 days.
In the past when clients went past their 30 day grace period, we would call Anthem and tell them that our client promises not to do that again and to please reinstate coverage for their employees as our client will overnight the check. I can’t remember a time where Anthem did not approve the reinstatement. If you read the recently released “Notice of Grace Period and Right to Request Review“, Anthem may no longer be accommodating.
What I do know is that Anthem pays out more in claims that what the State of California will allow them to charge some businesses. Why would Anthem want to be accommodating to a business that loses them money?
Here is another question: If a group plan is cancelled for non-payment and the employees and/or dependents incur claims, who is expected to pay those claims?
Answer: Injured employees would seek their employer.
Our advice to employers:
Please pay early as you may not receive a reminder from the insurance company.
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