BlueCross BlueShield SelectTemp PPO Rates going down August 1, 2010!!   

New reduced SelecTEMP® PPO rates will be effective August 1, 2010. The discount applies to all tiers, areas and deductibles and equated to a 10% across the board discount. Click here to download the SelectTemp® rate card or click here to login to the Hallmark website to run a client specific quote.

Remember, with BlueCross BlueShield of Illinois (BCBSIL) if you sell a SelectTemp® policy and subsequently submit a permanent Individual application, any unused portion of your SelectTemp® premiums can be applied to your permanent policy once the individual policy is approved if there are overlapping dates of coverage! Thus if you run into a person without prior coverage, it is a great way to get the applicant coverage immediately, and have them seamlessly covered during the underwriting period. Write a 60-day SelectTemp® policy and take an under 65 individual application simultaneously. When the individual application is approved, then use the above premium application option and be assured to get your client covered immediately with no gaps in coverage for the most economical coverage. 

Note, with the ARRA subsidy sun setting (the government program where they paid 65% percent of qualifying individuals COBRA or IL Continuation group premiums) short term medical product is in very high demand right now! Also note many individuals' 12 (or 15) months of eligibility in the aforementioned government assistance is coming to an end for many that were initially eligible/enrolled in the program. Short term and individual medical policies are a great way to save when compared to unsubsidized (expensive) COBRA premiums!

Annual Rate Adjustment for Individual Products (Under 65) 

BCBSIL is adjusting the major medical individual (Under 65) product rates for policies effective on or after August 1, 2010. New rates are now available on bcbsil.com and the Producer Services website. Existing members will receive a letter informing them how this rate action will affect their plan. For more information, please contact a representative in our Individual Major Medical Division.

**Please discontinue using Software version 6.0 as updates will not available until further notice. ** 

Two Major Medical Individual Products (Under 65) Discontinued

In response to the legislative provisions associated with health care reform, BCBSIL is realigning the existing individual markets’ product portfolio. As a result, BCBSIL is discontinuing sales of two major medical Under 65 products: Traditional BlueSM and Basic Blue®.

Sales materials for Traditional Blue and Basic Blue products are being removed from bcbsil.com on July 30, 2010. Please note:

• All members currently enrolled in these plans will be grandfathered in.
• New members will not be enrolled in these two products after an effective date of September 15, 2010.
  

Child Only Policies-- Going Through Major Changes!!!

On Friday, July 16, 2010, BC/BS filed a new policy called Blue Pathway to provide coverage for children age 1 through 18 when the child is the primary insured (commonly called “child-only” policy) with the Illinois Department of Insurance (DOI).

During the interim period while they are waiting for authorization to sell this new product, BCBSIL will temporarily suspend issuing new policies to children under 19 when the child is the primary insured. BCBSIL will stop quoting its current child-only policies on July 30, and the last assigned effective dates for those policies will be Sept. 15, 2010. Any application that has not been approved by Sept. 1, 2010, will be withdrawn from consideration. Once the DOI approves this new policy, BCBSIL will provide information on how to apply for the coverage. BCBSIL is committed to reducing administrative costs for this product. For this reason, Blue Pathway will be available only on a direct-sale basis.  Click here for full release. 

Miscellanous “Worthy” Reminders
(based on the amount/types of questions we are fielding at Resource Brokerage)   

Downgrades

Given the new details provided in the Interim Regulations, BCBSIL has determined that a decrease in benefits (e.g., increasing deductible) will result in the loss of grandfathered status and may result in a future premium increase that offsets any savings from the downgrade. As a result, BCBSIL is temporarily suspending the processing of all downgrade benefit changes for individual member policies that are not currently marketed plans (i.e., closed plans). Any applications from members in closed plans for downgrades in benefits that were not processed prior to June 14th will be returned to members explaining in additional detail this temporary change in processing policy downgrades. Members in plans that are currently marketed (i.e. open plans) can continue to downgrade their benefits; however, those whose original effective dates prior to March 23rd will lose their grandfathered status and will be moved to a PPACA compliant version of their product on January 1, 2011, with an appropriate rate.

< 65 Major Medical Policy Effective Dates with BCBSIL

BCBSIL revised their effective date requirements for new business in May. Policy effective dates now must only be the 1st or the 15th of the month. In order to lock in the 1st of the month effective date, applications must be received by Resource Brokerage no later than the 15th of the prior month. In the event an application is received between the 16th and the 31st, the earliest effective date will be the 15th of the following month. The date that underwriting administratively completes the underwriting process will determine the offer date of the policy. If underwriting completes their underwriting process by the 14th, the policy will get the 15th effective date. If they complete their underwriting by the 31st, the policy will get the 1st effective date. Obviously it is quite possible that a application could be received by the 15th of the month (requesting a 1st of the month effective date) and ultimately receive a 15th of the following month effective date because of underwriting processing times.

Premium Reminder Individual <65 Individual Applications

As discussed at our June 8th "Breakfast with the Underwriters" meeting, premium is no longer required with the <65 applications. As a reminder to the brokers that could not make that meeting, all the broker needs to do is take an EZ Blue Form and submit it with the application. As similar to the regular submissions with a check, the bank draft will be made immediately upon receipt of the application (as soon as the underwriting process commences). In the event the application is not offered or taken, the process is identical to the prior “premium check submissions” and a BCBSIL check will be sent back to your client as a refund for the amount initially debited from the account.

Resource Brokerage, LLC | 1501 East Woodfield Road, Suite 110E | Schaumburg, IL 60173-4945
phone: (800) 605-7566 | fax: (847) 605-1262
www.resourcebrokerage.com