← Back to News & Updates
2-50: Retroactive Rate Adjustment Effective May - July 2011
Nov 08, 2011
Announcing a retroactive rate adjustment for certain SBG groups
Effective dates May–July 2011
After discussions with the California Department of Managed Health Care (DMHC), Health Net is implementing a retroactive rate reduction for their Small Business Group HMO plans for new and renewing business with effective dates of May through July 2011.
Key points of this action:
- Impacted Small Business Group benefit plans include HMO, POS and EOA. (HMO plans include those available in Health Net's Salud, Silver and Bronze tailored networks.)
- This adjustment does not affect plans launched May 1, 2011, including:
- Standard HMO 20 and 30 Dual Network
- Value HMO 30 and 40 Dual Network
- Value HMO 50
- Value EOA 50
- Standard HMO 15, 25, 35 and 50
- Standard EOA 15, 25, 35 and 50
- The average rate reduction is 2.7 percent for the specified time period.1
- Rates for groups with renewal or effective dates August 2011 or later are not affected.
- Groups will receive the adjustment in their December 2011 premium statements.
- Premium billings for affected groups will include the rate reduction for the balance of their current contract year.
Adjustment percentage varies by plan type and region.
Health Net will be reaching out to brokers and impacted employer groups with helpful information about the adjustment. Click here
to view the sample broker letter.