The Annual Open Enrollment period is the time for firms currently participating in the ProtectPlus plans to add and delete plan participants, make administrative changes and change their plan selections. However, this year, renewing firms with 2-50 employees have an additional choice—the choice to elect a 12/31/13 renewal date or a 1/1/2014 renewal date, based on projected premium rates.
What a Difference a Day Makes
How can one day make a difference in your premium rates? The Affordable Care Act (ACA) made significant changes in the way health care rates are calculated for firms renewing or enrolling in a health care plan for a 1/1/2014 effective date. These changes include breaking down married and family tiers into individual rates per family member. ACA also imposes a 3-1 rate ratio, which means no rate can be more than 3 times the lowest rate. Generally, under the 3-1 ratio limit, younger plan members pay more than their actual claims experience dictates and older plan members pay a lower premium than experience dictates in order to effect the mandated ratio. Firms that renew for a 12/31/2013 effective date are not subject to the ACA 3-1 ratio or the deconstructed rate tiers until 2015 and are generally more favorable to younger participants. Firms will receive premium projections for both scenarios in their annual renewal packet and may choose the rating structure that best fits the demographics of their firm.
Newly Enrolling Firms
Firms newly enrolling in the CalCPA ProtectPlus program may choose an effective date of 11/1/2013, 12/1/2013 or 1/1/2014 based on the rating structure that best fits the firm.
CalCPA ProtectPlus Marketplace
The CalCPA ProtectPlus Marketplace is a private healthcare exchange for CalCPA member firms with 2-50 eligible employees. Newly enrolling firms selecting a 1/1/2014 effective date may get quotes, choose plans, enroll and decide whether to allow employees self-enroll. Firms renewing for a 1/1/2014 effective date can get quotes and view plan options. This feature is under construction and will be available soon.