Dependent Eligibility
Covering Dependents Until Age 26
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Click here for an update on Coventry's response to health reform, specifically related to new dependent eligibility rules.
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Multi-Option Adjustment Spreadsheet
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In the February edition of Constant Contact, we introduced a Multi-Option Adjustment for groups utilizing more than one plan design for the same case. Depending on the difference in premium between the lowest cost benefit and the highest cost benefit, the adjustment may be made as follows.
Since that time, we have developed a tool that will allow you to load basic information about a group and establish a single option quote. Once you have done that, you can load additional benefit plan options. The tool will then provide you immediate feedback as to the pricing between the low option and high option, and what adjustment is necessary, if any.
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HRA Product Design Update
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When determining pricing for any plan design, underwriters evaluate specific features of the plan, including deductibles, and assign a utilization credit based on the assumed impact of the deductible on utilization patterns. As employers have begun providing Health Reimbursement Arrangements (HRAs) toward some portion of the deductible, the funding has mitigated the effect of the deductible on utilization patterns resulting in higher health care usage than assumed in pricing. In response to this, underwriting guidelines have been revised to raise the previous minimum of $500 in deductible responsibility required from members to the greater of $500 or 50% of the deductible value.
Coventry Consumer Choice has reissued the HRA Product Selection Sheet to eliminate standard designs not conforming to the aforementioned specifications. If Coventry Consumer Choice is not selected as the HRA administrator, Southern Health expects our broker partners to understand the implications of an HRA design outside these guidelines. Our underwriters will need to evaluate the proposed plan design and determine whether rates that have been proposed by Southern Health are appropriate with the additional level of funding by the employer. We appreciate your support in this matter. |
Safe Senders
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If you are not receiving emails notifying you that a new commission statement is available, please check to make sure that the following address is in your "safe senders" list. You may also use this address to send questions about your commissions.
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Never Miss an Issue!
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Remember seeing something in a past newsletter, but didn't keep the email? Not a problem anymore!
Past issues of the Broker News Flash beginning with January 2008 are now archived for easy access. Click on the link below and be directed to our past issues.
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| Coventry Health Care and Southern Health are registered trade names of Southern Health Services, Inc., a Virginia HMO. PPO products are underwritten by Coventry Health and Life Insurance Company and administered by Southern Health Services, Inc. in Virginia. |
