May 23, 2011

Important Change to Processing of Renewals

EmblemHealth has traditionally processed requested benefits changes on the first day of the month of plan renewal, regardless of whether the group's original policy effective date was the first or fifteenth of the month. After listening to broker feedback about this issue, we are pleased to announce a process change that we feel will both standardize and simplify renewal plan changes for both groups and brokers.

Effective June 1, 2011, any plan changes made upon renewal will now be implemented based on the group's policy effective date: the first or fifteenth of the month. We will no longer automatically default those changes to the first of the month.

For example, under the new process, a group with a policy anniversary date of September 15, 2011, will receive a renewal letter with rates effective with their September 15, 2011, renewal date. Any requested benefits changes to the renewing plan will be also be effective September 15, 2011 - not September 1, 2011 as under the current system.

For groups renewing with no changes, the same policy will apply. This will ensure that policy-year deductibles are credited for the full year, from original effective date to renewal date. For example, annual deductible accumulators for a high-deductible health plan policy-year group with an effective date of September 15, 2011, will have the accumulators reset effective September 15, 2011.

We look forward to continuing to work closely with you to better serve our customers and your clients. If you have any questions about this change, please contact your EmblemHealth representative.