Kilpatrick

Carrier News

Humana Offering Shortened Plan Year Renewals to Transitional Relief Groups

Important update Apr 1, 2019. The original article is preserved below for historical reference.

On Mar 25, 2019, CMS extended their transitional policy for an additional year. Humana released May and June 2019 renewals with a shortened coverage period described in the preserved article below. The shortened offers included a 2.5% and 3% discount on renewal premium for groups renewing in May and June, respectively. Humana will allow groups to accept the shortened period offer or renew on a full 12 month coverage period. To estimate medical renewal premiums for a 12 month period, multiply May renewal premiums by 1.026 and June renewal premiums by 1.031. Humana will not regenerate all renewal offers automatically. They will only provide us with an official 12 month renewal offer when we confirm that a client wants to keep their existing anniversary date.


[Original article]

Under current federal guidance, small groups offering coverage under Transitional Relief are allowed to renew their plans through Oct 1, 2019 as long as the coverage does not extend beyond Dec 31, 2019. CMS has not yet issued another extension of the transitional policy.

Due to the uncertainty of another federal extension, Humana will only offer groups with Transitional Relief plans with Feb-Sep anniversary dates the option to renew with a shortened coverage period lasting until Jan 1, 2020. To be clear, in order to renew a policy with Transitional Relief coverage, a group must change their anniversary date. Groups that move to ACA-compliant or Level Funded Premium plans will keep their current renewal cycle and anniversary date.

The renewal offers incorporate an adjusted rate-down for the shortened coverage period. If a group offers life, dental, and/or vision, those renewal rates will allow incorporate a rate-down for the shortened period and will renew again with the medical on Jan 1, 2020.

Groups that use a cafeteria plan to collect employee contributions on a pre-tax basis may need to amend their cafeteria plan to accommodate a different plan year.

If and when CMS extends Transitional Relief beyond 2019, Humana will discontinue the short renewal process and renew groups on their current renewal cycle.

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