Short-term auto-renewal plan opportunity
Urgent! Blue Cross and Blue Shield of Kansas City (Blue KC) recently filed an amendment with the states of Kansas and Missouri and gained approval for Short-Term Plus plan automatic renewals. Existing Short-Term Plus plan members enrolled on or before August 1, 2024, will automatically renew coverage for one year in Kansas and two years in Missouri. See below for additional information about this exciting, limited-time opportunity.
Why did Blue KC take this action?
- The new final rule includes an anti-stacking rule which limits the frequency your clients can enroll in a single carrier’s plan.
- With the new final rule, as of September 1, 2024, your clients cannot enroll in a plan greater than four months in length with the same carrier within the same 12-month period.
In response, to support our members and your clients, Blue KC submitted an amendment to the states to give members an opportunity to maintain their membership with Blue KC for the Short-Term Plus plan.
How does the limited time Short-Term plan amendment work?
- Members on the Short-Term Plus plans with effective dates prior to September 1, 2024, do not need to reapply.
- Current members or prospects who apply by August 1, 2024, with an effective date of August 1, 2024, can receive continuous coverage for an additional one or two years, depending on their state of residency.
- Kansas residents who apply by August 1, 2024, will receive a one-year automatic renewal.
- Missouri residents who apply by August 1, 2024, will receive a two-year automatic renewal.
- For example, a Kansas resident who is enrolled in a Blue KC Short-Term Plus plan effective August 1, 2024, will automatically renew for one year on January 1, 2025, through December 31, 2025.
- For example, a Missouri resident who is enrolled in a Blue KC Short-Term Plus plan effective August 1, 2024, will automatically renew for two years on January 1, 2025, through December 31, 2026.
What does this mean for you?
- Do you have clients currently enrolled in Short-Term (90-day) plans? If so, now is the opportunity to move them to a Short-Term Plus plan if they want a Short-Term plan in 2025.
- Blue KC has created an opportunity for you to capitalize on this short window of time (must submit applications by August 1, 2024), before the final rule goes into effect September 1, 2024, which puts a limit on future policy options.
- Help yourself and your clients by moving them to a Short-Term Plus plan by August 1, 2024, with an effective date of August 1, 2024, to be eligible for one- or two-year automatic renewals (depending on state).
Driving value for the member
- Prescription drug coverage is included in Short-Term Plus plans.
- Kansas members who automatically renew will not experience medical underwriting in 2025.
- Missouri members who automatically renew will not experience medical underwriting in 2025 and 2026.
- Automatic renewals mean continuous coverage for one or two years without the burden of application submittal.
More about the new Short-Term final rule
- Initial short-term, limited-duration insurance (STLDI) contract terms are limited to no more than three months, and the maximum coverage period to no more than four months, including renewals or extensions.
- Blue KC three-month plans that have an effective date of January 1, 2025, and after will renew automatically for an additional month. Premiums for the fourth month will be auto drafted or members have the option to opt out of the fourth month coverage before the premium is auto drafted. Blue KC three-month plans with an effective date prior to January 1, 2025, will remain as three-month plans.
- Beginning September 1, 2024, STLDI policies cannot be sold to or renewed to the same policy holder by the same issuer within a rolling 12-month period.
- A dependent of a policy holder may choose to enroll in a future plan, as long as they are not the current policy holder.
- All members will be notified via letter of this amendment change in August 2024.
Enrolling members
- Brokers: Login to the agent portal and send your personalized link to new prospects.
- Mail an application for new prospects:
- Application available here.
- Mail application to: 2301 Main, P.O. Box 419169, Kansas City MO 64141
Email our Broker Development and Engagement Manager Barb Bin at barbara.bins@bluekc.com.
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