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Small Group "One and Done"
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Starting with July Effective Dates, You Have the Option: Same Rates, Same Benefits for Up To 17 Months
Do your small group clients want rate stability through November 30, 2014?
Do they want to know their benefits won't change through November 30, 2014?
If so, Coventry Health Care of Virginia, Inc. has the options you need. Beginning with our July 1, 2013 small group renewals and new sales, and continuing through October 1 effective dates, our BenefitExpress renewal packets will contain a unique opportunity. As mentioned in our last broker notice, we are aware that many of our mutual clients want to ensure benefit and rate consistency, stability, and predictability by making a change to their contract year. We have made that simple for 3rd Quarter effective dates.
What You Need to Know:
- The scheduled renewal will be offered as expected for the new contract year. For example, July renewals will be released as normal around April 15. The difference is that these groups have the additional option of selecting an early December renewal while maintaining the same July rates and the same July benefits.
- Small Group Clients who wish to renew early for December 1, 2013 will have a new contract year through November 30, 2014. The choice is theirs - stay on the current contract year or choose a new one starting December 1.
- We will not increase rates or change benefits in December for clients with effective dates between July 1 and October 1, 2013 who choose to exercise the early renewal option.
- Contract year accumulators: Deductibles, out-of-pocket maximums, and benefit limits will start over on December 1, 2013. They will have a new full 12 month contract year.
- Clients only need to sign the Early Renewal Request Form and return it to their local Account Manager. This form will be available with all Small Group Renewals/New Sales beginning with July effective dates. We need the signed form back by August 15, 2013.
- SBCs: Employees will need to be notified of the change in plan year and receive a new Summary of Benefits and Coverage by October 1, 2013. We will provide these to all groups that require them.
Below is a schedule of activity that is crucial for the successful implementation of the early renewal program:
- July Renewals: Released in mid-April with one and done rates/benefits that apply when the Early Renewal Request Form is received by August 15, 2013. Clients will receive 17 months of rate and benefit stability.
- August Renewals: Released in mid-May with one and done rates/benefits that apply when the Early Renewal Request Form is received by September 15, 2013. Clients will receive 16 months of rate and benefit stability.
- September Renewals: Released in mid-June with one and done rates/benefits that apply when the Early Renewal Request Form is received by September 15, 2013. Clients will receive 15 months of rate and benefit stability.
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The following effective dates are not part of the One and Done program. As previously communicated, we will be offering off-cycle renewals for January - June on the following schedule:
- January - March Effective Dates: Early renewal offer will be released in mid-July. The Early Renewal Request Form is due by September 15, 2013.
- April - June Effective Dates: Early renewal offer will be released in mid-August. The Early Renewal Request Form is due by September 15, 2013.
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Important Notes
The decision to change contract years is entirely up to the client. Clients who do not wish to change their contract year will not be adversely affected by their decision to keep their existing policies in force as originally contracted. They will be offered a 2014 renewal on schedule under the rating and benefit requirements of health care reform.
This offer is intended for groups that meet the federal definition of small employer. If your client receives an early renewal offer and you do not believe they meet the federal definition of small employer, please contact your local Account Manager. At the next scheduled renewal, they will be rated as a large employer consistent with state and federal laws.
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Safe Senders
| If you are not receiving emails notifying you that a new commission statement is available, please check to make sure that the email address coventrycommissions@cvty.com is in your "safe senders" list. Do not send an email to this address. Instead, call 800.438.4029 for any questions regarding commissions.
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| | PPO products are underwritten by Coventry Health and Life Insurance Company and administered by Coventry Health Care of Virginia, Inc. |
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Charlottesville Office:
434.951.2500
Richmond Office:
804.747.3700
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