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05/31/10 Adult Children's Medical Coverage Adult Children’s Medical Coverage - Effective Tuesday, June 1, 2010   APPLIES TO:  Blue Cross Blue Shield, HealthPartners and Medica group health plans.   EXCLUDES:  PreferredOne group health plans, dental and life coverage - only medical coverage.   Compliance with the new healthcare law can be very confusing.  The new law requires employers to offer coverage to adult children through age 25. This becomes effective for plans renewing after September 23, 2010.   Example: If your insurance plan renews on April 1, 2011, the new law takes effect on April 1.  If your plan renews on September 1, 2010, the new law will take effect on September 1, 2011.   From this, some medical carriers are implementing the change for fully insured groups effective June 1, 2010. The carriers are doing this to simplify administrative procedures. Rather than terminating coverage for adult children who turn age 25 - as Minnesota law now allows - the carriers are allowing them to stay on your plan. This might simplify your administrative procedures so you do not have to add them back in at your next renewal, but it could also cost your company additional premium dollars if your company subsidizes all or a portion of coverage for the 25-year old dependent.   SevenHills Benefit Partners believes it should be your choice whether to provide coverage before the law requires it or to exercise your right to wait until your next renewal after September 23, 2010.   Originally, HealthPartners was the only carrier that allowed an employer to “opt out”.  Blue Cross and Medica did not have an “opt out “clause.  However, after protest from the agency community to the Department of Commerce (DOC) that the Employer, should be able to “opt out”, the DOC officials have persuaded all of the health carriers to offer an “opt out”.   MORE DETAILS ON HOW EACH VENDOR IS HANDLING THIS ISSUE:   BLUE CROSS BLUE SHIELD - Effective June 1, 2010, any dependent adult children currently on any fully insured group health plan can stay on until their 26th birthday.  Any adult dependent children under the age of 26 who are not on the group health plan cannot come on the plan until the plans first renewal after September 23, 2010.   HEALTHPARTNERS - Effective May 1, 2010, any dependent adult children currently on any fully insured group health plan can stay on until their 26th birthday.  Any adult dependent children under the age of 26 who are not on the group health plan cannot come on the plan until the plans first renewal after June 1, 2010.   MEDICA - Effective June 1, 2010, any dependent adult children currently on the group health plan can stay on until their 26th birthday.  Any adult dependent children under the age of 26 who are not on the group health plan can come on the plan.  They will be treated as a late entrant with pre-existing conditions with credit for continuous coverage.  Coverage will be effective first of the month following Medica’s receipt of the enrollment application.   IF YOU WISH TO “OPT OUT”:  If you wish to “opt out” of this provision until the law requires it, please call Jenny Johnson (651.209.9819) or Tyanne Grant (651.209.9825) at SevenHills or you can email FormsProcessing@ SevenHillsService.com.  SevenHills will always reply back within 24 hours of receiving your e-mail.  If you do not receive a reply back within 24 hours, your e-mail was not received and you should call our office immediately.   IMPORTANT!  If you have any New Hire employees or active employee Changes for an effective date of July 1, 2010, SevenHills must receive the paperwork by June 15, 2010 to ensure your employee a July 1st effective date.   IMPORTANT!  Always check your monthly bills to ensure that your New Hires, Changes and Terminations are processed correctly and in a timely matter.  Questions, call SevenHills immediately.  Thank you! To news list

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