Kilpatrick

Carrier News

Humana’s Transitional Relief Options for Small Employers Renewing in 2017

On Feb 23, 2017, CMS issued new guidance extending Transitional Relief through 2018. Employers that offer health plans that are not compliant with the ACA’s market reforms may continue to renew their policies in 2017.

Under prior CMS guidance, Transitional Relief was scheduled to end in 2017. In anticipation of its end, Humana allowed employers whose policies renew Feb-Oct 2017 to elect a shortened plan year in order to continue their Transitional Relief coverage through Dec 31, 2017. CMS’s latest extension now allows employers to renew Transitional Relief plans in 2017 for a full 12 month period.

Employers that elected the Short Option

Humana will allow employers that elected the Short Option to rescind their election and go back to a 12 month plan year. Employers must submit theĀ Short Option Rescission Request form to Humana by Sep 1, 2017.

For groups that renew Transitional Relief coverage, Humana discounts the premium rates for short plan years according to a uniform schedule (see table on this page). Rescinding the short plan year will require Humana to reverse the discount applied to the renewal rates. For groups that submit a rescission request after their 2017 renewal date, Humana will adjust the monthly rates on the next invoice and add adjustments for the prior months of the plan year. If the client submits the rescission request prior to the 2017 renewal release, the renewal exhibit will reflect 12 month pricing.

For groups that change plans to ACA-compliant coverage in 2017, the premium is not discounted for a short plan year. Rescinding the short plan year will not impact the monthly rates billed by Humana. Groups that move to ACA-compliant coverage will retain a short plan year unless they submit a rescission request before the deadline.

Employers that did not elect the Short Option

  • Jun-Oct Renewals – Humana will provide a Transitional Relief renewal offer to the group and automatically renew the group on their current coverage unless the group elects to change plans.
  • Apr-May Renewals – Due to timing restrictions, Humana only offered ACA-compliant plan options to these groups. These groups may request to keep their current plan and have their renewal reprocessed. Interested groups must submit an Extended Transitional Relief Election Request via email to keepmyplan@humana.com by the Mar 17 for Apr renewals and Apr 17 for May renewals. Include “keep my plan” in the subject line. Please forward or copy tworhol@kilpatrickcos.com on the request for record-keeping purposes.
  • Feb-Mar Renewals – Groups that renewed in Feb and Mar are not eligible to have their renewal reprocessed.

Other notes

Humana will provide clients that offer Transitional Relief plans with other Transitional Relief alternate plans and ACA-compliant alternate plans at renewal upon request. Rescinding a Short Plan Year election does require the employer to renew their Transitional Relief coverage.

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