Proposed federal rules for short-term plans + special offer for current members
New proposed federal rules for short-term plans would close loopholes on insurance products that provide less coverage than ACA plans. As a result of the proposed rules, Arkansas Blue Cross has a special offer for existing Complete and Complete Plus members.
Frequently Asked Questions
What is happening with limited duration plans in 2024?
On July 7, 2023, the Biden administration proposed new rules for short-term plans that would close loopholes on insurance products that provide less coverage than ACA plans (e.g., plans like Complete & Complete Plus). Under the new rules, if/once finalized, all short-term plans would be limited to three months in duration, or a maximum of four months, if extended, per year.
How will this affect future Complete and Complete Plus sales?
Under the new rule, we would no longer be able to sell Complete and Complete Plus plans if/once the federal guidance is finalized.
What does this mean for current Complete and Complete Plus members?
Beginning October 1, 2023, existing Complete and Complete Plus members will be given a one-time offer to apply for a renewable term Complete or Complete Plus plan. Their new renewable term plan’s effective date would be January 1, 2024, with coverage extending through December 2026.
How will the underwriting timeline and requirements work for this one-time offer?
This initiative will have an expedited underwriting process featuring a seven-day decision window with no underwriting development (e.g., ordering medical records from providers). Underwriting will be based entirely on existing internal records.
When can existing Complete and Complete Plus members begin submitting applications?
We will begin accepting applications on October 1. The last day we’ll accept applications for a January 1, 2024 effective date is December 1, 2023.
Will agents receive lists of their current Complete and Complete Plus members?
Yes. Similar to the lists we distribute for our Complete/Complete Plus reapply report, we will send lists to agents containing their Complete and Complete Plus clients.
Will this initiative feature AOR protection?
If a member submits the application unassisted online, we will protect the agent of record. However, if the member calls our internal sales team or visits a retail store to complete the application, the agent of record would change (NOTE: All communications will instruct members to contact their agent if they have one.).
What happens if a member is declined in the underwriting process?
The member would not lose existing coverage and will maintain their current policy end date, but it would provide an opportunity for agents to discuss other coverage options with their clients.
How will members be notified about this one-time offer?
We will send letters, emails and text messages to members explaining the implications of the new federal regulations and how our one-time offer will allow them to extend their Complete or Complete Plus coverage through 2026.
What else do I need to know about this campaign?
It is extremely important that all applications contain complete identifying information (e.g., names, dates of birth, addresses, etc.) so the underwriting team can keep the process moving quickly. Please direct your clients not to leave any of these fields blank. If any member receives an amendment, please use the Blueprint for Agents cases function to submit it back to us.