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Commissioners hear benefits broker say Anthem takeover threatens planned 2-year rate guarantee
Summary
County benefits broker told commissioners Anthem’s acquisition of IU Health Plans threatens a second-year rate guarantee; the broker said he will press Anthem for assurance and prepare market alternatives if necessary.
County benefits broker Ron (representing the county’s long-term broker) told Owen County commissioners the transition of IU Health Plans to Anthem has put a previously negotiated two-year rate guarantee at risk, and the broker asked commissioners to give Anthem two weeks to respond before he pursues legal options or markets the county’s coverage.
“Don’t panic,” the broker told county employees in the room. He said Anthem informed the county the IU Health Plan would be transitioned to Anthem’s platform and that Anthem has not yet confirmed honoring a second-year rate guarantee written by IU Health Plans for the county.
The broker said he and his firm represent multiple employers in the state with the same exposure and have documents showing the county and IU Health Plans expected a two-year rate guarantee. If Anthem refuses to honor the second year, the broker said he will press the carrier and, if needed, “seek legal counsel against Anthem” on the county’s behalf; he said he preferred to give Anthem two weeks to respond.
Commissioners asked whether employees would lose coverage during the transition. The broker responded that coverage would continue and employees would receive Anthem cards; the immediate concern was whether Anthem would honor the previously negotiated second-year rate guarantee. Commissioners asked for market quotes if Anthem declined to honor the guarantee; the broker said he will begin collecting quotes from other carriers, including UnitedHealthcare and SCIO, in such a case and expected to have preliminary market options by the end of the month.
The broker provided claims and premium year-to-date figures to commissioners and said the county’s plan had paid roughly $624,000 in claims on $923,000 in year-to-date premiums, which he described as a favorable claims picture that should support rate negotiations.
Commissioners directed the broker to report back before their next meeting; they also discussed setting preliminary budget figures in case Anthem refuses to honor the guarantee and legal action becomes necessary.
