2-99: Anthem Announces April 2012 Updates

Jan 25, 2012

Anthem Blue Cross 2-50 & 51-99
April 2012 Benefit & Rate Adjustments

Anthem Blue Cross has announced April 2012 quarterly rate adjustments to their 2-50 and 51-99 portfolios, averaging 5.0% statewide for medical. Other news includes:

New ACO Medical Plans
Specialty Updates
Revised RAF Promotion
Quoting for April 1, 2012 effective dates is available now.

Other recent news from Anthem Small Group includes:

MEDICAL RATE ADJUSTMENTS

Average statewide rate increases by portfolio and product are provided below. Since increases vary by plan and region, any member of your b&p Sales Team will be able to provide plan specific rate increases.

EmployeeElect

2-50 & 51-99 HMO = 6.9%
2-50 & 51-99 PPO = 3.2%
2-50 & 51-99 CDHP = 12.8%
Please note that the 51-99(including 2-50 MHP compliant plans) quarterly increase is the same as 2-50; however, book rates are slightly higher for the 51-99 portfolio.

EmployeeChoice = 7.9%

BeneFits = 3.5%

Quarterly Rate Adjustments

Anthem Blue Cross Small Group has issued the following quarterly rate adjustments. It should be noted that these rate adjustments are averages and vary by plan and by region.

January 2012 = 2.1% (with a CDHP rate pass)
October 2011 = 3.2% (with several plans receiving a rate pass)
July 2011 = 0.6% (with a CDHP and HMO rate pass)
April 2011 = 3.3%
January 2011 = 4.7%

April 2012 Book Rates
Book rates area available below, on the b&p website and bpServ (iPad/iPhone app)

MEDICAL PORTFOLIO CHANGES
There will not be any benefit changes to the 2-50 or 51-99 medical portfolios. Both portfolios, however, will add two (2) new Accountable Care Organization plans (ACO) for April 1, 2012 effective dates.

Two New ACO Plans

New ACO 20 and ACO 30
- Three (3) network tiers: ACO; PPO; and Out-of-Network
- Lower premiums and more control over healthcare
- No annual deductible when using ACO providers
- Manageable copays
Click here to view the plan benefits

ACO Network

The ACO network will be comprised of:

Santa Clara County IPA (aka SCCIPA in Santa Clara)
Sharp (San Diego)
HealthCare Partners (Los Angeles)

SPECIALTY CHANGES

With the exception of Prime & Complete Dental, all ancillary products will receive a rate pass for April 1, 2012 effective dates. Click here to learn about Anthem's 2012 Specialty Bonus Program.

Dental

Prime & Complete = 1.23%
All Other Dental PPO = Rate Pass
All DHMO = Rate Pass
No changes to benefits.

Vision

Rate pass and no changes to benefits.

Life (effective 4/1/12)

Rate pass and no changes to benefits.

Life (effective 3/1/12)

Composite Life rates for new sales in the 11-19 segment were reduced.
The minimum face amount for Small Group Life will be $25,000.
Click here for more details on the 3/1/12 Life changes.

EXPANDED RAF PROGRAM

The Anthem Blue Cross RAF Program will expand the .90 RAF offering beginning with April 1, 2012 effective dates. The revised RAF program is available to new AB 1672 qualified groups. A RAF of 1.06 or better is required for all groups, with certain exceptions noted below.

.90 RAF available to 6+ enrolled (GenRx, Select HMO and BeneFits only)*
.90 RAF available to 10+ enrollees (no change)**
.95 RAF available to 6-9 enrollees (no change)

*.90 RAF for 6+ Enrolled

*Option 1: A minimum of 50% participation is required in either the GenRx PPO plans and/or any of the Select Network HMO plans. NO QUALIFYING RENEWAL RAF IS REQUIRED.

*Option 2: Enrollment of six (6) or more in the BeneFits plan portfolio. NO QUALIFYING RENEWAL RAF IS REQUIRED.

**Enrollment in Solution and/or Elements Hospital Plans

Groups with 10+, enrolling more than 70% in a Solution and/or Elements Hospital plan is not eligible for a .90 RAF. They will receive a .95 RAF.

*Click here for our Deadlines & Offers sheet for the rules and exclusions.

IMPORTANT DATES

January 23rd (approximate): April broker renewals will be mailed.
January 25th (approximate): April group renewals will be mail