Help with Early Renewal ?

[Todd Preston]

Hi friends,

My present company AVMED, wants me to select 2 options.

1. Early renewal with a New Premium update for Dec 2013. It will not be in the ACA exchange.
2. Not sign and my coverage and plan stays in affect until June of 2014. At which time new rates will come out.

I tried to get some straight answers out of the AVMED rep but they didn't know much....so i'm posing the questions here.

1. What would be the advantage of signing up for early renewal?
2. Would not the June 2014 rates be the same as those offered in Dec 2013?

I am newly licensed and still have a lot to learn and was "Hoping" someone would be so kind enough as to help me figure this out.

thanks so much for any help you can give.

 

[Todd Preston]

Can someone please help me find and answer to this?

 

[toddoxley]

If you do nothing your current plan changes to a ACA plan in June 2014. If you take early renewal ( Dec213) then delay to Dec 2014 when your plan must comply with ACA.

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ACA plan cost mucho more...

 

[Ann H]

Hi friends,

My present company AVMED, wants me to select 2 options.

1. Early renewal with a New Premium update for Dec 2013. It will not be in the ACA exchange.
2. Not sign and my coverage and plan stays in affect until June of 2014. At which time new rates will come out.

I tried to get some straight answers out of the AVMED rep but they didn't know much....so i'm posing the questions here.

1. What would be the advantage of signing up for early renewal?
2. Would not the June 2014 rates be the same as those offered in Dec 2013?

I am newly licensed and still have a lot to learn and was "Hoping" someone would be so kind enough as to help me figure this out.

thanks so much for any help you can give.

Do a little math crunching. You are really looking at lowering your costs for June to December 2014, because your group plan must become ACA-compliant by 12/1/2014 at the very latest. And, in answer to your question "Would not the June 2014 rates be the same as those offered in Dec 2013?", the answer is that the ACA-compliant plan you would be taking in June 2014 will most likely be higher cost, but you never know until you look at hard numbers.

Here is how to do the math:

1. If you don't have to sign the document right now, then send your case out to bid, with a requested effective date of 1/1/2014. If you have to sign the document ASAP, then look at the premiums for a carrier in your state that has released premiums for Individual & Family Plans (IFP). The new group rates will be similar to IFP in 2014, with a variation of up to 10%.

2. Find an apples-to-apples comparable plan, and figure out how much the premium differs for an Obamacare plan than your current plan.

3. Then, it will be clear if you should do one of the following:
A. Take an ACA-compliant plan as early as 1/1/2014 (you would do this if the premium is much cheaper for an Obamacare plan or the benefits much more attractive to you.) This is sometimes the case in groups that currently have a high medical risk load or that have a census with older people and more women in child-bearing years.
B. Keep your current renewal date of June 1st, and pay the premium for an ACA-compliant plan for the remaining 6 months of 2014.
C. Change your renewal date to December 1st, and pay the small difference in premium for the months of June-December 2014. You would do this if the ACA-compliant plan's premiums are much higher. This could be the case if you currently have a healthy group with low medical risk load, or a census of young males.