This is an important reminder that Employers with 1 to 50 employees who sponsor a California Kaiser Permanente Group Health Plan have until 5:00pm PST Friday August 30, 2013 to file the Kaiser-Early-Renewal-Intent-Form.
What Is The Kaiser Intention To Renew Early Form?
Simply stated, this form (Kaiser Small Business Form No. 60141913 (August 2013) informs Kaiser that you want 35 more days to think about their offer to change your anniversary date. There is no commitment on your part. We recommend you submit the form, as it changes nothing in your current arrangement with Kaiser, but it does buy you until October 4, 2013 to think about their offer.
Which Employers Should Consider An Early Renewal?
- Employers with a Non-Grandfathered Kaiser small group plan
- And contract renewal dates in the first half of the year
- And who have not made a prior renewal date change in 2013.
I have Submitted The Form Already, What Happens Next?
Over the next few days (until October 4th), you have the opportunity to decide if you want to go through with a contract anniversary date change. If you wish to proceed, then you must file an additional form by October 4, 2013, titled the Kaiser-Early-Renewal-Confirmation-Form, which confirms your intent to renew early for December 1, 2013.
What Is The Advantage To Changing My Renewal Date?
First, employers with Grandfathered plan status probably should not change their anniversary date, unless your advisor/broker has recommended it. All other eligible employers would consider the following factors:
- Is your existing RAF (risk adjustment factor) 1.1 or .90?
- Is it important to delay your renewal to keep costs down?
- Is it not worth the hassle to delay the inevitable?
Remember, there are additional important issues to consider, and Kaiser warns that a group will bear all responsibility for its decision to accept the offer for early renewal including but not limited to the group’s compliance with the ACA and ERISA (see related story)..
Talk with your broker for answers, or leave us a comment at the end of the article.