What is advanced renewal?Advanced renewal is an option Anthem is making available to small group employers in advance of upcoming health care reform mandates effective January 1, 2014. This option allows employers to modify their current renewal cycle, moving their renewal from the month of their Original Effective Date (OED) to December 1, 2013.

Why is Anthem allowing employers to change their renewal date?We understand that health care reform will generate many questions for employers. The advanced renewal option allows interested employers and their brokers the time to navigate the changes brought on by health care reform and figure out the best plan and cost options.

Who is eligible?Any small group that covers 2-49 employees.

If advanced renewals are for groups 2-49 employees, what options do we have for groups with 50 or more employees?Groups of 50+ that are currently on the 2-50 EmployeeElect Portfolio or MHP Compliant plans will renew on to ACA compliant plans or they may be eligible to move to the 51-99 EmployeeElect Portfolio. These larger groups can realize the same advantages of advanced renewals for 2-50 groups without having to change their renewal month.

How will brokers access group’s advanced renewal quotes and is Anthem providing a quote comparison showing a group’s current vs. advanced renewal rate on their active plans?Anthem will be providing advanced renewal quotes for ALL California small groups in the near future.

In order for you to access your group’s advanced renewal quotes, you’ll need to register for eRenewals, our online tool for accessing California small group renewal packages. Once advanced renewal quotes are available, we’ll send you an email alert so that you can retrieve quotes for your group(s). You can register for eRenewals online by going to the AgentAccess site at www.anthem.com/ca and selecting the “New Online Renewal” link under the Small Group Highlights section.

Once you’re registered, not only will you be able to access advanced renewal quotes, but you’ll also receive all of your group’s renewal materials electronically. With eRenewals, you’ll get your renewal materials approximately one week sooner than those sent by mail and you’ll save a tree. We’ll send you an email alert when your renewal packages are ready, then you go to the AgentAccess site and on the home page, you can either click on the red “My Group Renewals” link under “Quick Links” in the left hand navigation or select “My Group Renewal” from the Small Group pull down tab at the top of the page to access your materials. For additional information on registering for eRenewals or how to get a quote, you may contact your account manager, underwriting, enrollment & billing or contact broker services at 800-678-4466.

How will employers be notified about the advanced renewal option?While we anticipate the broker to be the main point of contact with the group for notification, there will be a message on each employer’s bill letting them know to reach out to their broker for more information. Additionally, some employers may receive a letter notifying them of their options.

Can new groups that enroll with Anthem in any month during 2013 opt to advance renew?Yes.

Advanced RenewalFREQUENTLY ASKED QUESTIONS

General

General Overview • Processing Advanced Renewals Dental, Vision and Life Impacts • Important Employer Information

If a group opts for advanced renewal, will their rates change?At the time of advanced renewal, groups would be subject to fourth quarter 2013 rates. Also, composite rated life and factor rated dental plans are based on the employee census, which may also impact specialty rates.

Can employers also request to change their plans at the time of their advanced renewal?Yes. The requested anniversary month will now be considered the group’s open enrollment period. These plan changes will be processed as a separate request, following the normal procedures for plan change requests at a group renewal.

Will a group get a new renewal packet as a result of changing their renewal month?No. Groups will receive rate sheets and their updated plans and premiums will show on their first bill.

If a group opts for advanced renewal, will their Risk Adjustment Factor (RAF) be changed?No. Anthem will not be adjusting RAFs as part of an employer’s opt-in for advanced renewal. However, as with any renewal, employers can request a RAF review at time of anniversary, which could result in a subsequent change.

Once the renewal date has changed, will the group renew again based on the original effective date month?No. After adopting advanced renewal, the renewal will be processed on the new renewal month going forward.

Is advanced renewal the right choice for all small group employers?Not every group will benefit from changing their anniversary date.

Are there any rules employers should be aware of when considering advanced renewal?Because adopting advanced renewal requires a group to change its plan year, groups should discuss this option with their legal and/or tax advisor before choosing it. The IRS has set forth criteria for when a group may change its plan year. If your employer group coverage covers less than 50 employees, but the employer employs more than 49 full time equivalent employees, the employer may be subject to health care “shared responsibility” taxes that cannot be delayed by changing the plan year.

What if the employer does not wish to change their renewal date?No action is necessary. The group will renew on the regular cycle (month of the original effective date) to the 2014 health plans. Information will be provided in the group’s 2014 renewal packet.

How does an employer request advanced renewal?An employer can request a change by completing the new advanced renewal opt-in form and sending to the underwriting department (see instructions on form).

How will advanced renewal changes be processed?Opt-in forms requesting changes to the group’s renewal date will be processed by the underwriting department upon receipt. Additional renewal-related requests (e.g., employee adds/deletes, plan changes) will be processed using normal renewal operating procedures.

When does the request need to be received by Anthem?The requests must be received by November 15, 2013.

How will groups with multiple group numbers be processed?We will only change the anniversary date of the group number listed on the advanced renewal opt-in form. If there are multiple group numbers, each group number will need to be listed on the form.

Processing

Will some groups receive their first quarter 2014 renewals, even though they requested advanced renewal?If Anthem processes a group’s request for advanced renewal after the system has already generated the group’s 2014 renewal, it is likely that renewal will be mailed to the group. The group should ignore the renewal packet. This issue may impact groups renewing in Q1 of 2014.

Will a request to change the renewal date change a broker’s commission?The commission schedule will continue to be based on the original effective date. However, the amount paid may change based on the group’s premium changes.

Dental, Vision, Life

Can employees also request to change their plans?Yes, the requested anniversary month will now be considered the group’s open enrollment period. These plan changes will be processed as a separate request.

When will a Summary of Benefits and Coverage (SBC) need to be provided to members?The standard open enrollment SBC guidelines apply. The employer is responsible for supplying SBCs to members 30 days prior to the new anniversary month and seven business days from the date of the request, if a plan change is requested.

Employers

For groups with medical and specialty coverage from Anthem, will a group’s specialty products (dental, vision, life) advance renew with the group’s medical plan or stay on the old renewal cycle?All products (medical and specialty) under a specific group ID will advance renew on the requested medical anniversary month. In addition, groups with Dental Prime and Dental Complete coverage will also see those plans advance renew.

If I advance renew my health plan, can I add dental coverage?Yes, you can add benefits. You can even add benefits and offer them on a voluntary basis. Employees can get more without impacting your bottom line.

Will specialty products receive rate changes if renewed early?Possibly. Groups would be offered Anthem’s latest rates for small group dental, vision and life plans at the time of their renewal. In addition, factor-rated dental plans and composite-rated life plans will be re-calculated based on the census information on the date the anniversary month is changed. Adjusting the renewal date for your plan may change your age band or cause a reduction in life benefits to occur on the new anniversary date.

Will Dental Prime and Dental Complete plans be allowed to change their renewal month?Yes, the Dental Prime and Dental Complete plans have a separate group ID number, which should be included on the advanced renewal opt-in form.

Will specialty-only groups be allowed to make an anniversary month change?Yes, using the same opt-in form.

For more information, contact your Anthem representative or Broker Services at (800) 678-4466.

CASG-AR-FAQ (6/13)

Will updated ID cards and Evidence of Coverage (EOC) be sent?Employees will only receive updated ID cards and EOCs only if they modify their plans at the time of advance renewal.

How will employees be notified the employer has changed the anniversary month?It will be the employer’s responsibility to notify members of the change.