As previously announced, Anthem Blue Cross had a medical loss ratio below 80% over the 2015-2017 period. This means that clients who were enrolled in the 2017 calendar year are getting some money back. The annualized rebates will average approximately $142 per member.
Anthem Blue Cross Resources
Additional Anthem Blue Cross Information
- Anthem Blue Cross members, direct and through CaliforniaChoice, in 2017 will get an MLR rebate.
- The rebate will not appear on the employer’s bill, instead, Anthem mailed checks to employers on or before September 8, 2018.
- Anthem will be mailing letters to the employees by September 18, 2018.
- Employers should base rebates on the Employer/Employee contribution amounts.
- Employer is not to take into account who covered dependents.
- Past members should be given a rebate unless they cannot be reasonably located. If they cannot be reasonably located, the rebate can be distributed among the other employees.
- Employers must take action within 3 months of receipt of the rebate.
- If the original Employee contribution amounts were pre-tax, rebates are taxed and need to appear on W2s.
- CalCOBRA members will receive their rebates direct from Anthem.
Distributing Rebates to Employees
The group is responsible for distributing the rebates to eligible enrollees. There are several ways they may be distributed, including a check in the mail, a lump-sum reimbursement to the bank account (if the premium was paid by credit card or debit card), or a direct reduction in future premiums.
For individuals with employer-sponsored insurance, the employer may provide one of the above rebate methods or otherwise apply the rebate in a manner that benefits the employee.
Decisions on how the rebate is applied are subject to the general standards of fiduciary conduct under the Employee Retirement Income Security Act (ERISA).
Resources from the IRS, DOL and CMS
For questions, please contact your B&P Sales Representative – 888.722.3373.
Employers should seek legal counsel to ensure full compliance with all applicable requirements.