Questions and Answers: HNE’s Settlement with the Division of Insurance August 20, 2010
Posted by jkane in : InsideHNE Broker , add a comment| Q: | Why did HNE agree to settle with the Division of Insurance (DOI)? |
| A: | HNE decided to settle our case to bring certainty to our rate structure. The agreement will end the upheaval experienced by individuals and small businesses over the last few months. We also believe that the settlement will set the scene for a more constructive statewide conversation about health-care costs. We look forward to resuming our work to find meaningful and sustainable ways to address the drivers of health care costs. |
| Q: | What are the rate increases that have been approved as part of this agreement? |
| A: | Premium base rates approved in this settlement are between 5.5% and 14.9% with an effective date of September 1, 2010. Final rates will be based on plan type and effective date of the renewal. |
| Q: | What does the range mean? |
| A: | Rate increases will be in the range of 5.5% and 14.9% and will vary based on plan design. |
| Q: | Is 14.9% the maximum increase? |
| A: | Rates will still reflect demographic adjustments for 2010. Age band adjustments were made to the 2010 rate model; therefore, there may be some changes that result in rates that are higher than 14.9%. |
| Q: | How will groups and brokers be notified of the settlement? |
| A: | HNE will provide groups with a notification letter. Brokers will receive a letter with a proposal sheet identifying the group’s current plan(s). |
| Q: | How will groups know what the new premiums are? |
| A: | Groups will receive the new rates in their October premium bill. The new rates will be reflected beginning with October premium bills. October bills will also include an amount which makes up the difference between the September interim premium bill and the premium agreed to in the settlement. |
| Q: | When will I get my re-rate for my September quote? |
| A: | HNE’s goal is to have all final rates to brokers and groups during the week of August 23, 2010. |
| Q: | Will census shifts affect the rate increase for September? |
| A: | Based on DOI agreement, your final rate is based on your census from your date of renewal. The group’s anniversary date will remain the same. If the group requires HNE to re-rate with new census we will do so as needed. |
| Q: | Is the DOI settlement a qualifying event for open enrollment? |
| A: | No, this does not qualify for an open enrollment period. |
| Q: | Is the rate increase retroactive to the employer group’s original anniversary date? |
| A: | No, the rate increase is effective September 1, 2010 |
| Q: | Can a group buy-down? |
| A: | Yes, if requested, a group can buy down. The effective date of their plan will be the 1st day of the following month and their original anniversary date will not change. HNE will not make retroactive plan changes. |
| Q: | Will HNE collect the back due premium all at once? |
| A: | Yes, the September premium differential will be due with the October premium. Rates will change as of September 1, 2010. |
| Q: | Will HNE retro bill for premiums prior to September? |
| A: | No, the agreement states “effective September 1, 2010”. The September premium differential will be due with the October premium. |
| Q: | When will HNEDirect be ready for on-line quoting? |
| A: | HNE anticipates HNEDirect will be available by the end of August for on-line quoting. |
| Q: | Why was HNE able to lower its premium rates from its original rate filings? |
| A: | HNE removed the profit margin from the small group business, meaning we will not make a profit on small group businesses in 2010. |
| Q: | Why are your percentage increases higher than your competitors? |
| A: | HNE’s increase is higher than our competitors because, in some cases, our starting base rates were lower than some of our competitors. HNE has always been committed to providing cost effective rates to our groups and the % increase approved by the DOI reflects our lower rates. |
| Q: | What are the primary drivers for health insurance premiums? |
| A: | Health care costs are rising for a variety of reasons: an aging and increasingly obese society, new and more expensive technologies, and a propensity to use expensive treatments instead of less expensive alternatives. |
Health New England Reaches Agreement on Premium Rates August 18, 2010
Posted by jkane in : InsideHNE Broker , 2commentsHNE reached agreement with the Massachusetts Division of Insurance (DoI) on premium rates for small business and individuals purchasing or renewing their health insurance plans between April 1, 2010 and December 31, 2010. Under the agreement:
- HNE will not retroactively charge customers who purchased or renewed plans between April 1, 2010 and August 31, 2010 the difference between the rates agreed to in the settlement and the interim 2009 rates which had been in effect.
- Premium rates for individuals and small businesses will increase between 5.5% and 14.9%.
- The new rates will be reflected beginning with October premium bills. October bills will also include an amount which makes up the difference between the September interim premium bill and the premium agreed to in the settlement.
HNE President & CEO, Peter Straley, said that “This agreement will end the upheaval experienced by individuals and small businesses over the last few months. We look forward to resuming our work to find meaningful and sustainable ways to address the drivers of health care costs.” Straley added: “Health Care is complex. We need health care providers, industry and insurance companies all working together to contain costs. The health plans can’t do it alone. No one can do it alone.”
Important Announcement Regarding Broker Compensation July 28, 2010
Posted by jkane in : InsideHNE Broker , add a commentIn today’s changing healthcare market, it has become increasingly challenging to stay competitive. At HNE, we are committed to working with our business partners to identify innovative solutions to these challenges. In reviewing our current broker compensation program, we’ve identified some changes that will allow this program to remain competitive while controlling administrative costs.
We provided a notice of these changes in your commission statement mailed on June 15, 2010 and the revised compensation brochures are now available. The brochures describe the compensation plan in detail, however here is a brief overview of the changes to our broker compensation program:
- We will pay compensation of $25 per enrolled subscriber per month for fully funded groups of 6 to 50 eligible employees.
- We have changed the criteria for attaining a Retention Bonus to a 90%, 95%, and 99% member retention requirement for each respective bonus percentage range.
- We have set an incentive bonus payout maximum of $150,000.
These changes are effective August 1, 2010 and will include all existing and new business accounts regardless of anniversary date.
Please contact Eric Harlow, HNE’s Broker Relations Manager at eharlow@hne.com or (413) 233-3378 to request a copy of the revised brochure.
We appreciate your support in meeting the challenges that we all face in providing our customers with access to high quality, affordable care.
MHQP Releases 2009 Massachusetts Statewide Patient Experience Survey Results June 24, 2010
Posted by admin in : Press Release , add a commentMassachusetts patients assess their experiences with primary care in first comprehensive survey since state health reform implementation
Boston, MA-June 24,2010 - A report released today by Massachusetts Health Quality Partners (MHQP) provides the first comprehensive assessment of how patients rate their experiences with primary care since the state’s groundbreaking health reform law was implemented.
Federal Health Care Reform Law June 11, 2010
Posted by sbillias in : InsideHNE Broker , add a commentAs your business partner, HNE is committed to keeping you informed of changes to the healthcare industry, particularly those which could have an impact on your business. This posting describes two new provisions in the federal healthcare reform law[1], enacted on March 23, 2010 that may impact your group health plan:
Currently, HNE is reviewing your group health plan designs. We will identify whether or not any changes to them are necessary to comply with these provisions before the effective date applicable to your plan.
HNE will keep you informed as additional information becomes available regarding the federal healthcare reform law, the full implications of which may not be known until the final implementing regulations are issued.
[1] The federal health care reform law is the Patient Protection and Affordable Care Act (PPACA) as amended by the subsequently enacted Health Care and Education Reconciliation Act (HCERA)
Earn Continuing Education Credits – attend HNE’s consumer-directed health care lecture! June 4, 2010
Posted by jkane in : InsideHNE Broker , add a commentHNE is proud to sponsor a lecture featuring Dr. Steve Neeleman, MD, CEO of HealthEquity. This free, two hour program is worth 2 CEUs toward your Massachusetts Producer’s licensing requirements.
With more and more people choosing consumer-directed health care (CDHC) plans, it has become increasingly important to understand the nuances of HSAs and other account based options. Dr. Neeleman will:
- Outline the trends behind CDHC
- Offer a preview of things to come
- Explain how to take full advantage of personal healthcare financial services.
Immediately following the lecture, HealthEquity representatives will facilitate a question and answer session focused on describing the HealthEquity solutions offered to your HNE clients enrolled in HRA and HSA qualified plans.
DATE: June 30, 2010
TIME: Registration 8:30 a.m., lecture to begin promptly at 9:00 a.m. Q&A from 11:00 a.m. to noon.
PLACE: Springfield Sheraton Hotel, Main Ballroom
Space is limited, so please RSVP to Karla Vandal at kvandal@hne.com or 413-233-3239.
Please bring your MA state producer’s license number with you.
URGENT: Call your state senator TODAY. May 27, 2010
Posted by jkane in : InsideHNE Broker , add a commentWhen the Patrick Administration, through the Division of Insurance (“DOI”), denied carrier rates for April, 2010, we spoke to many of you regarding the potential for market confusion. We fully understand the significant burden this has put on you and your clients along with the additional pressure of not knowing what your clients’ actual health care cost obligations will be for 2010.
The State Senate will begin debate today on the FY’11 state budget. Amendment 345 filed by Senator Stephen Buonoconti, Chair of Financial Services, is an attempt to fix this situation. The amendment would put in place an alternative rate approval process and strict timelines for rate approval at the Division of Insurance. The amendment will hold carriers to the most stringent rate approval standards in the country, setting a test for approval that will ensure appropriate levels of medical and administrative spending while requiring DOI and the carriers to adhere to timelines for approval well in advance of you receiving your official rate quotes . While we cannot fix the confusion you and your clients have experienced because of DOI’s actions, Senate Amendment 345, if adopted, will bring certainty to you and your clients going forward.
Please call your State Senator and tell him or her that you support Amendment 345 as a way to alleviate the chaos caused by current DOI actions. Direct lines for state senators are attached for your convenience. If you do not know who your senator is please call Jen Willis at 617-259-2780 (or 617-448-4749) she is standing by to help connect you with your senator.
While we realize that this does not eliminate caps on rates, it will allow plans an alternative option for rate filing. Under this amendment plans would agree that a minimum of 88% will be spent on medical care and there will not be more than a 1% profit margin.
If you have any questions please contact Lynn Ostrowski, Director, Brand & Corporate Relations at 413-538-1564.
Massachusetts State Senate Phone List
| NAME | PHONE |
| Steven A. Baddour | 617-722-1604 |
| Frederick E. Berry | 617-722-1410 |
| Stephen M. Brewer | 617-722-1540 |
| Stephen J. Buoniconti | 617-722-1660 |
| Gale D. Candaras | 617-722-1291 |
| Harriette L. Chandler | 617-722-1544 |
| Sonia Chang-Diaz | 617-722-1673 |
| Cynthia Stone Creem | 617-722-1639 |
| Sal N. DiDomenico | 617-722-1650 |
| Kenneth J. Donnelly | 617-722-1432 |
| Benjamin B. Downing | 617-722-1625 |
| James B. Eldridge | 617-722-1120 |
| Susan C. Fargo | 617-722-1572 |
| Jennifer L. Flanagan | 617-722-1230 |
| Jack Hart | 617-722-1150 |
| Robert L. Hedlund | 617-722-1646 |
| Patricia D. Jehlen | 617-722-1578 |
| Brian A. Joyce | 617-722-1643 |
| Thomas P. Kennedy | 617-722-1200 |
| Michael R. Knapik | 617-722-1415 |
| Thomas M. McGee | 617-722-1350 |
| Joan M. Menard | 617-722-1114 |
| Mark C. Montigny | 617-722-1440 |
| Michael O. Moore | 617-722-1485 |
| Richard T. Moore | 617-722-1420 |
| Michael W. Morrissey | 617-722-1494 |
| Senate President Therese Murray | 617-722-1500 |
| Robert A. O’Leary | 617-722-1570 |
| Marc R. Pacheco | 617-722-1551 |
| Steven C. Panagiotakos | 617-722-1630 |
| Anthony Petruccelli | 617-722-1634 |
| Stanley C. Rosenberg | 617-722-1532 |
| Richard J. Ross | 617-722-1555 |
| Karen E. Spilka | 617-722-1640 |
| Bruce E. Tarr | 617-722-1600 |
| James E. Timilty | 617-722-1222 |
| Richard R. Tisei | 617-722-1206 |
| Steven A. Tolman | 617-722-1280 |
| Susan C. Tucker | 617-722-1612 |
| Marian Walsh | 617-722-1348 |
July 2010 Notice of Changes to Fully Funded Plans May 5, 2010
Posted by jkane in : InsideHNE Broker , add a commentAs part of our commitment to provide affordable access to high quality health care, we continually review the benefits and services offered to our members. As a result, from time to time we update the coverage we provide and change the way that coverage is administered. We then notify our members, their employers, our brokers, and our contracted providers of these changes.
The following link will open a copy of the amendment to the HNE Explanation of Coverage for fully funded plans:
We will send this amendment to HNE subscribers with the next edition of our member newsletter, My Health Matters.
Health Care Reform: How Will it Impact your Business? May 4, 2010
Posted by jkane in : InsideHNE Broker , add a commentJoin Us for an Exclusive Invitation Only Event!
Tuesday, May 25, 2010 8:00 a.m. – 11:30 a.m. MassMutual Center Springfield, MassachusettsRSVP by May 20 to Laura Dellapenna at ldellapenna@hne.com
The Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010 are now law. Whether you favored or opposed their enactment, a full understanding of the new laws is essential to further discussion of reform issues, including how implementation will be approached. We realize that as an employer or broker you may have questions about the major provisions of these two laws and how they will affect your business. HNE has assembled a panel of knowledgeable experts to provide an overview of the time line, discuss the components of the new law that are similar and different from what we have already done here in Massachusetts, and answer your questions. Following is an overview of the program:
| Registration & Continental Breakfast | 8:15am – 8:45am |
| Welcome and Program Overview | 8:45am – 9:00am |
Peter F. Straley, President & CEO, Health New England
How This Historic Legislation Will Affect You and Your Business
|
9:00am – 9:45am |
| Mark Tolosky, President & CEO, Baystate Health
The Health Care Delivery System Under National Health Care Reform
|
9:45am – 10:15am |
| Break | 10:15am – 10:30am |
| Steven F. Bradley, VP Government & Community Relations and Public Affairs, Baystate Health What is New with the Mass Health Connector and Legislative Update |
10:30am – 11:00am |
| Question & Answer | 11:00am – 11:45am |
Update on 2010 Premium Rates April 23, 2010
Posted by jkane in : InsideHNE Broker , add a commentHNE continues to appeal the DOI’s position on premiums. In the meantime, as instructed by the DOI, we will be using 2009 base rates adjusted for 2010 plan changes and account demographics (including census changes). It is likely that we will not know the final premium rates for awhile. It is extremely important to note that these are interim rates, in effect until we receive final rates from the DOI. There is a strong possibility that rates may change again and that the cost of coverage ultimately will be based on the final premium rate determination. Please advise your clients that they will be responsible for the difference between the final premium rate and the interim premium rate.
The HNEDirect Broker Module is back on-line. Save yourself some time. For groups with 6-50 employees, you’ll get the quote back in seconds! Your new quote will reflect the interim rates HNE has established.
Click here if you did not know about on-line quoting.
Click here to login to the HNE Direct Broker Module.