10/02/2018
IMPORTANT TO KNOW
The busy season is upon us for insurance renewals.
While most insurance providers have worked to keep increases in check for group health plans moving into the fourth quarter of 2018, those who have family plans are in for the biggest sticker shock, as a result of the following:
"Beginning in 2014, the Affordable Care Act (ACA) implemented a member-level rating structure that requires or mandates non-grandfathered Small Group and Individual & Family Plan (IFP) carriers to charge one dependent rate for children ages 0 to 20 and unique rates by age for every dependent beginning with age 21. This component of the member-level rating structure changes for non-grandfathered Small Group and IFP carriers with plans selling or renewing in 2018.
The Centers for Medicare & Medicaid Services (CMS) released regulations in late 2016 that change the member-level rating structure for dependents under the age of 21 for plans sold or renewing January 1, 2018 and later.
Under the new rules, carriers may charge one single rate for dependent children ages 0-14, and unique rates by age for dependents ages 15, 16, 17, 18, 19, and 20. Under the amended rules, carriers may still only charge for the three oldest dependent “children” under the age of 21."
This means that there is no longer a flat rate for dependents 21 and under, only 14 and under.
