| HB 2002 newly merged 2-50 employer group pool
March 6, 2008
Last June, Governor Kulongoski signed H.B. 2002, which will consolidate the 2-25 and 26-50 employer group markets, create new rating bands for health insurance premiums, and identify the allowable rating factors that can be used in the new merged market.
The new requirements fundamentally alter the methods that health insurance plans use to determine premium rates for small employers. These regulations also outline allowable rating factors and institute standardized business practices for health insurance plans active in the small employer market.
Even with this standardization, certain segments of the 2-50 employer market have and will likely continue to experience changes in their premium rates as the new rate bands take effect over the three year phase-in period. Due to these reforms, small employers will continue to face both premium increases - and decreases – in the near future.
Accordingly, Regence BlueCross BlueShield of Oregon will begin underwriting and pricing the newly merged pool in compliance with the new regulations. Here are some frequently asked questions from our agents on this change:
- Beginning April 2008, how will Regence merge the Oregon 2-25 and 26-50 employer pools?
- Prior to April 2008, underwriting discretion was permitted for employer groups in the 26-50 pool.
- Beginning April 1, 2008, the rating methodology of the two pools will be standardized in compliance with H.B. 2002, which does not allow underwriting discretion.
The new merged pool will see fluctuation in rates, mainly in the first year. Rate fluctuations will primarily impact our 26 – 50 groups. Our 2- 25 groups will see their rates remain more predictable as a result of the movement to the new rate bands.
We understand the impact this will have on your members and we will work with you to find a reasonable solution for each of our groups.
When can I quote business for April renewals and new business?
Agent Center is open now to quote new business for April 1, 2008 for groups 2-25. Please continue to send groups 26-50 through your sales teams. April 1, 2008 renewals will be available soon.
What major factors will Regence use to price the 2-50 group business?
- Age (Employee, Spouse and dependent included),
- Contribution
- Participation
- Geography
What is the critical information needed for a renewal or quote?
Renewing groups must complete the group profile form. This form is sent direct from us to the group, click here to view the form. If quoting outside of Agent Center for group size 26 and above, the below information must be provided with your quote request.
- Average number of employees in the preceding calendar year
- Current number of Eligible Employees working 17.5 hours or more per week
- Do you intend to cover all employees?
- Do you intend to cover a class or classes of employees?
- Do 51% or more employees work in Oregon?
All of Regence’s sales and renewal teams are ready to assist you with this transition to a single 2-50 group pool. Please call your team with any questions or issues that we can help you with.
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