BCBSMT Launches Financial Relief Program to Help New and Existing Insured Customers

July 15, 2020

We’ve worked closely with our customers throughout the pandemic to understand the economic and health challenges they, their employees and our communities face.

Every decision we’ve made as a company during these extraordinary times is through the lens of a long-term commitment to our members and our communities, with the goal to support our customers and members, just as we always have. In many cases, we have been actively working with our customers on a one-to-one basis to identify solutions that will provide short-term relief.

Now, as a result of our ongoing discussions with customers, we’re excited to announce the COVID-19 Economic Response Program, which is designed to help new and existing fully insured employer group customers during this unprecedented national emergency.

Briefly, we’re offering a premium deferral to existing fully insured customers and a two-year rate guarantee to new fully insured customers.

The charts below provide more detail.

COVID-19 Economic Response Program for Existing Insured Customers

Customers	Option	Method	Recoupment Plan	Decision
Fully insured Size 51+ enrolled employees*	Defer 50% of July billed medical and dental monthly premium	Line item credit on future Customer Statement** Example: Client X deferred one monthly premium in 2020 = $240,000	Spread evenly across 12 monthly invoices in 2021 as a line item charge (regardless of anniversary date).  Impact is approx. 4.2% increase additional premium in 2021. Example: Client X’s 2021 monthly invoice line item deferred premium charge = $240,000/12 = $20,000	Opt IN by Aug. 15, 2020, if you want to defer 50% of July monthly premium.

*Account executives will help customers determine if an employer is eligible.
**Actual invoices credited will be subject to opt-in decision timing by customer. If opt-in signed form is received and processed by July 31, 2020, then credit will appear on the September Customer Statement. If received and processed after July 31, 2020, or signed opt-in form is received by Aug. 15, 2020, then credit will appear on the October Customer Statement.

COVID-19 Economic Response Program for New Insured Business (New Employer Group to BCBSMT) with effective dates from July 2020 through January 2021

Customers	Option		Method	Recoupment Plan	Decision
New customers with effective dates from July 2020 through January 2021 Fully insured Size 51+ enrolled employees	Default Option	24-month rate guarantee at first 12 months rates for medical and dental	No rate increases in the first 24 months. Policy year limited to 12 months and a renewal will be provided.	No recoupment needed	Decision and criteria will be indicated in the additional provisions of the BPA, which must be signed prior to the effective date.
	Alternate Option	Defer 30% of first 3 months of medical and dental premiums*	Line item credits** for first 3 months will appear on customer statements for months 2-4 and recoupment over the last 8 months will appear on customer statements for months 5-12.	Recoup the deferment in the remaining eight months as a line item charge with maximum 9.9% first-year renewal increase for medical and maximum 5.0% first-year renewal increase for dental	Decision and criteria will be indicated in the additional provisions of the BPA, which must be signed prior to the effective date. Exceptions will be made for July and August 2020 effective dates to process and sign a revised BPA given the timing of the release of the COVID-19 Economic Response Program.

*Account executive to work with underwriter to capture and document.
**Actual invoices credited will be subject to opt in to this option and decision timing by customer.

Who’s eligible?
Most fully insured groups 51+ enrolled employees will be eligible.

Who isn’t eligible?

• Self-funded groups, MPP, Cost+, ACA-rated small groups, Blue Balance Funded^SM, student health, ADM, MEWA/PEO, association health plans, retrospective premium accounts, customers on private multi-carrier exchanges, and prospective retention accounts.
• Accounts in stage two of delinquency are also not eligible, but those groups will be given a chance to rectify that status by July 31, 2020, so that they may qualify. (Stage two delinquency is defined as accounts with payments that are 30 days past due.)