See this logo at the top of your insurance paperwork? This is for you!

You may have recently received a refund check from Blue Shield of California on your group medical insurance plan. This was due to ACA legislation that mandates insurance companies must spend at least 80% of collected premiums directly on health care services; Blue Shield fell slightly short of this requirement for 2015.

The law also requires employers to pass along a portion of the refund to employees that were required to contribute toward their premium, either for themselves or family members.  These amounts may be credited to future withholdings, but checks should be sent to employees that have since terminated.  Since many clients renewed mid-year or late in 2015, most of the refunds we are seeing are minimal.  (Many of you renewed in December so we only need to review one month).  The calculations are quite complicated, but fortunately, we have developed a calculator that can easily figure the amounts due to employees.

In order to determine the amount you should credit employees, we need to know the amount of the refund you received. Please e-mail it to either Leanne,  leanne@simplicatehealth.com or Rob,  rob@simplicatehealth.com.   They will  calculate credits due, if any, and e-mail it to you in a spreadsheet.  Again, only those employees that paid a portion of the premium for themselves or family members are due a credit.

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