In our continued commitment to our clients and members throughout the COVID‑19 pandemic, Independence is offering medical and dental premium credits and other financial support to our fully insured clients.
As a result of the COVID‑19 pandemic, Independence has experienced a lower volume of health care services being delivered to our members than was anticipated when current plan prices were set. Moreover, our members have been unable to access some types of routine health services — from preventive screenings to dental cleanings — and many elective procedures have been delayed or cancelled.
We know many of our clients are having difficulties managing costs during this time when business has been interrupted, and we are hopeful that the premium credits we are issuing next month, coupled with other COVID‑19‑driven decisions we have undertaken to date, will further alleviate the financial burdens our clients may continue to face in the months ahead.
Medical premium credit
In light of the reduced health care services Independence members have utilized in recent months, we are able to pass on the associated cost savings to our fully insured group clients in the form of a one‑time premium credit reflected in clients’ September medical invoices. The medical premium credit is calculated using member enrollment figures as of July 1, 2020.
Fully insured small group clients (2 – 50) will see a 10 percent reduction, while fully insured large group clients (51+) will see a 20 percent reduction in their September invoices, which they should expect to receive in mid‑August.
Dental premium credit
In addition, due to reduced dental care services available and provided during the pandemic, Independence, in partnership with United Concordia Dental (UCD), will be issuing a one‑time, one‑month 50 percent dental premium credit for fully insured small group clients with Blue‑branded standalone dental coverage. The credit will be issued in the form of a premium invoice credit in August for the client’s September invoice.
Like the medical premium credit, the dental premium credit will be calculated using member enrollment figures as of July 1, 2020.
We are currently working with UCD to finalize plans for a premium credit for UCD‑branded fully insured group clients and will share additional details in the near future.
Broker commission impacts
Broker commissions will not be adjusted for small group medical products or dental products as a result of the premium credits. However, broker commissions for large group medical products, which are calculated on a percent‑of‑premium basis, will be adjusted to reflect the one‑month premium credit.
In addition to the medical and dental premium credits outlined above, Independence is offering the following payment flexibility:
We will continue to accept credit card payments from fully insured group clients with up to 500 enrolled members and from consumer members through September 30, 2020.
These initiatives augment the steps Independence has taken since the COVID‑19 pandemic began in March to support our clients, members, providers, and the community at large, which we previously outlined here and on our Business Hub resource page.
We recognize the mounting pressures many are facing due to the ongoing impacts of the COVID‑19 pandemic. By providing premium credits and other payment flexibility, Independence is hoping to reduce some of the financial burdens our clients and members are experiencing.
Please contact your Total Benefit Solutions, Inc benefit specialist at (215)355-2121 if you have any questions or concerns