Arkansas Blue Cross and Blue Shield and Health Advantage are voluntarily extending our efforts to provide relief to fully insured group health plans in response to the economic pressures and healthcare utilization changes that have resulted from the COVID-19 public health crisis.
A letter was mailed on August 14 to our fully insured group administrators letting you know that in August 2020, all fully insured group health plans (medical) would receive a one-time premium relief payment. Payments correspond to a percentage of each group’s billed premium for July 2020.
The payments are being given in response to a marked downturn in healthcare claims activity that has occurred as a direct result of the coronavirus pandemic. Payment checks are being mailed throughout August and should arrive by early September at the latest. Some of you have already received the checks but not the explanation letter. We apologize for the confusion this has caused.
Additionally, all fully insured group dental plans will receive a one-time 50% dental insurance premium relief payment based on July 2020 billed premiums.
These premium relief measures apply only to active, fully insured groups that were current on premium payments through June 30, 2020. Groups that meet this criteria and have effective dates prior to May 1, 2020, will receive premium relief payments. Groups not current on premium payments will receive the premium relief payments when all past due premiums are received and processed.
These voluntary payments are being made by Arkansas Blue Cross and Health Advantage in response to the pandemic’s suppression of healthcare utilization trends (not in response to direction by any regulatory agency or any legal requirement). The payment is not associated with statutory measures such as medical loss ratio (MLR) rebate, etc.
Groups that receive premium relief payments for both health plan (medical) and dental plan premiums will receive one check that details the amount of each premium relief payment.
We hope these payments help you face the challenges the public health crisis has presented while continuing to meet the needs of the people who depend on them for health coverage.
