Monday, April 7, 2014





The time is fast approaching to do the first real assessment of how well the first open enrollment period went under the Affordable Care Act, California-style.  CAHU’s top priority is to work to empower our members with the ability provide equality, reliable service to clients. A candid appraisal of the open enrollment challenges and opportunities will ensure system and process problems are resolved, lead to better client experiences in the future and strengthen the undisputable conclusion that “agents are the answer”.

Here are a few of the early issues:
Enrollment Diversity Challenges: Early indications of enrollment data by Covered California reveal that Latino, African-American, Asian Pacific Islander enrollment results are below demographic projections although there has been some success in Asian populations mainly related to agent-engagement. Latino enrollment increased from 21 percent to 26 percent.  That is an improvement from the last published results in February, but is still well below projected enrollment expectations of Covered California. CAHU will be updating the enrollment results for both businesses and individuals as more official data becomes available.

To address the challenge of enrollment California’s many different cultural communities, CAHU Diversity Task Force is moving forward and is at present engaging community groups in efforts to reach eligible small businesses and identify uninsured individuals in preparation for the next open enrollment period that begins in November 2014. 

Advance Premium Tax Credit:  Covered California recently identified about 3700 cases that were provided with an incorrect Advance Premium Tax Credit (APTC) when the consumer selected their plan. Some consumers received information that indicated an estimated APTC that was lower than the one they will actually receive.  A smaller group were provided an estimate of APTC that was higher than what they will actually receive in premium tax credits. 

In case a client calls regarding this issue, below is information that may help agents answer questions:
·         The APTC amount was corrected in the file sent to the carrier.  This means the consumer will be billed based on the correct APTC from the Eligibility Results page.        
  

  •  Approximately 3,100 of the cases are eligible for more APTC than displayed at plan check out (the premium they will be billed may be lower than expected from the screen).
  • Approximately 635 of the cases are eligible for less APTC than displayed at plan   check out (the premium they will be billed may be higher than expected from the screen). These consumers received the attached notice from Covered California –a copy of this notice will be in documents and correspondence in CalHEERS.
  • The following recommendations have been provided to CAHU by Covered California in the form of a Q&A to assist our members if they encounter this issue:


What should I do if I get a call from someone who got this letter?
•     Thank them for their call.  Apologize for any trouble this oversight may have caused.
•      If the consumer is confused by their invoice, review their case in CalHEERS.
•      Determine if consumer is eligible for more or less APTC than expected from the plan check out page (if this is case you’ll see this notice in the documents & correspondence folder in their case).
•     Explain the consequences if the consumer takes more APTC than is due to them
•   If the consumer wants to change their plan, submit their appeal
•   There is nothing to do in the system.  The data fix has been applied.

Change Request Form: The long promised Change Request Form is almost ready for release by Covered California.  There will be two Change Request forms; one for employee changes, and another one for employer update and/or changes.  These forms should be ready this week.  In the interim, please continue to send faxed changes into Pinnacle for updates.   CAHU will post the form as soon as it is available

Commissions: SHOP held a webinar last week to discuss SHOP commissions. Commissions are expected to go out near the end of April for the first few months of the year.  Please make sure that you have all of your information updated in the system.  Please note the following key points:


  • SHOP commissions will be paid in late April. Commission will be based on payment made by enrolled groups through March 25.
  • Payment will be made by check (direct deposit is not available at this time) and will be sent by the State of California Controller's office.
  • Payment will be made to the name and address in box 2 of the Standard 204 form that you submitted during the certification process. The information in the Covered California profile that you established will not be used for these payments.
  • A commission statement summarizing your book of business and how the   commission was calculated will be sent by SHOP separately to the address listed in box 2 of the Standard 204 form.
  • Statements will not be available through your Covered California portal.
  • If you are not sure what information you included on the Standard 204 form, you can contact SHOP to ask for a copy. The email to use for this purpose is: agents@covered.ca.gov

·         If you would like to request commission adjustments from SHOP follow these steps:
1.         Send an email to SHOP at:  agents@covered.ca.gov
2.         Put "SHOP Commissions" in the subject line
3.         Briefly describe the problem. Include all relevant information such as the group     name, case number, coverage month, and etc.

“How To” for Enrollments After March 31: Agents are facing some technical challenges with enrollments that occur after March 31 but before April 15.  Since open enrollment is technically over, the Covered California system will ask you for the reason you are making a change to enrollees’ applications that remain unprocessed.  Please note that agents, on behalf of their clients, will need to submit, under "life event that caused the consumer to re-apply" - indicate open enrollment. Please indicate the date of the application as March 31, 2014.  That is the only date that will permit the transaction to be completed.

Notices for Unpaid Bills:  There have been reports that there have been some notices for unpaid bills from carriers in the SHOP exchange that have been automatically generated by those carriers billing areas.   According to SHOP, please tell your clients to ignore those letters as they need to pay the SHOP, not the carriers directly.

On the horizon:  In the next months, CAHU will examine more fully the breakdown of who enrolled (e.g. previously uninsured vs. "churned" enrollment which simply moved from plan to plan). A review of the data will provide insight to whether or not there was a meaningful dent in the estimated 5.3 million Californians who lacked coverage, and the extent to which agents were a factor in enrollments.  Everyone will be looking at the total number of insureds who have paid their premiums, and aggregate the source of these paid enrollees amongst the categories of: agent-enrolled; direct self enrollment by consumer; enrollment counselor and navigator enrollments. 

I am very happy to report that early estimates from Covered California already clearly show that certified agents have been a powerful force in the engagement and enrollment of Californians in healthcare under the ACA.  CAHU will continue to make every effort to find, development and implement sensible solutions to the many challenges agents have faced and surmounted in the first open enrollment under the ACA.  It hasn’t been easy, but all of the information you have shared on those challenges has been and will continue to help make the system work better over time for your clients and all California looking for the best health care at the most affordable price.  Yes, CAHU’s thousands of agents  really have proven themselves to be “the answer.” 

Until Next Week,
Sam