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Issue: # 126
August 17, 2015
  
 

Dear  :     

 


Since we have been spreading the word about the Mass Wellness Credit, we have learned that employers also look for other non conventional perks/benefits for employees.  There is still a need to retain and reward employees and keep a stable work force.

Advantage Benefits reached out to The Hanover Theatre in Worcester about group discounts for our clients.  The Group Sales Manager was very helpful so now we are in the midst of forming a new relationship to offer our groups!

If you are thinking of something different for the Holidays why not check out the shows available for the Holiday Season.  There is something for everyone especially those groups with families. The children's shows can be a very special event to offer employees.  Any arrangement is possible, you could simply have employees pay and enjoy a group discount, you could share, or you could even try hosting a company event with a private room before hand, then see the show!

Please give us feedback.  Have you been to the Hanover Theatre before?   Does this program appeal to you?   E-mail us now if you would like to learn more.  We are always looking for ways to enhance our relationship with clients, so send your ideas our way. 



Health Insurance Renewals For 4th Quarter 2015

Just a heads up to our groups that renew in October 2015.  Traditionally for small groups the rates are released 60 days prior.  But, right now 4th quarter rates are still pending with the Mass Division of Insurance.  Rates may not be released for another 2 to 3 weeks.
Please sit tight and we will reach out to you as soon as rates are available.

Not only are the insurance carriers working on 4th quarter, but there is quite a bit of work to be done for 1st Quarter 2016.  We are hearing from our carriers that once again they are making plan design changes and the biggest issue is that the defintion of "Small Group" changes from 50 and under to 100 and under.  This is a significant change and we can only speculate on how it will impact those group rates.   
 
 
Breaking news As of Friday, August 14, 2015:   
 
ACA requires the small group market be defined as 1 to 100 employees effective January 1st, 2016 ( as noted above). Governor Baker asked for a permanent waiver for this requirement since in Massachusetts, we define small group as 1 to 50 employees.  His permanent request was denied, but we were given at least a 1 year reprieve

Undoubtedly Governor Baker will seek again to have it extended between now and January 1st, 2017.  This is a positive for groups, with good claims experience, in the 51-100 range to remain in the large group market since rates are partially based on their claims experience.  
If this market was merged with the small group market, those groups would no longer have the benefit of rate flexibility and negotiation based on claims experience.

As it stands small group will remain 1 to 50 employees in 2016 and Governor Baker will keep seeking another delay beyond 2017.   Other states that did not ask for this waiver are starting to realize the implications as noted by this column in the Crain's.  
Children's Smile Coalition/Young Heroes Recognition Awards

 As many of you may know, both Bill & I grew up in Worcester and now have our business here.  We have been involved and supported many issues and organizations in this area.  Giving back to the community is very important to us and we are pleased to be on the board of a local non profit organization, Children's Smile Coalition.

 

We especially admire part of their mission statement which is to encourage all children to give back to the community and volunteer their time.  So, each year there is an awards ceremony to honor and recognize children from Central Massachusetts that have taken the time and energy to give to others.

 

This year the Young Heroes Recognition Night will take place on Sunday 27th at Hanover Theatre.   We would like to thank some of our insurance carriers for donating and supporting this organization too.  Many thanks to:

  • Blue Cross Blue Shield of Massachusetts
  • Harvard Pilgrim Healthcare
  • Fallon Community Health Plan
  • Security Mutual Life Insurance Company
  • USAble Life Insurance Company

In addition, Special thanks goes out to:

  • Commerce Bank
  • Webster Five Cents Savings Bank
  • Rand Whitney

Nominations for this year are closed, but keep this in mind for next year.  If you know a child that volunteers his or her time, let us know.   If you would like to support, donate or lean more, just email us. 

 

 

Health Insurance Co-Ops are losing money around the country

In college the term "widgets" is used in many accounting and finance classes. According to Wikipedia, a widget is "a placeholder name for a manufactured device".  Another concept from college is that the more widgets that you can produce with the same machine and labor force, the cost per unit will drop. On the other end, the more widgets you buy, you will get a lower price per unit.

Health Insurance is not a widget and the various Co-ops set up around the country are realizing this. People assume that if you get a high number of people to join a Co-op, you automatically will get lower premiums.

Nothing could be further from the truth. A group of 50 employees with low claims will have a much better rates then a group of 10,000 with bad claims experience.  
As evidenced by this article in the New York Times, this fact is becoming quite clear to many Co-ops around the country.
 
Pioneer Institute study

This is especially concerning as more and more employers are adopting high deductible plans and their employees need to know what procedures will cost at various facilities.

Watch this interview Barbara Anthony, Pioneer Institute's senior fellow in healthcare and the author of the
study.  

click on picture to watch the interview