EMPLOYER READINESS ON UPCOMING … Readiness on Upcoming Requirements ... Molly Tatting Director of Health ... EMPLOYER READINESS ON UPCOMING REQUIREMENTS PART 1

Employer Readiness on Upcoming Requirements Part 2

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Web meeting call-in number: 800.644.8235 | Passcode: 801258

October 15, 2014

Health Care Reform Web Meeting Series

Today’s Agenda

> Reinsurance fee refresher

> Pay.gov process

> Proactive checklist

for self-funded employers

> Support for self-funded employers

> Communications and opportunities

to learn more

> Wrap-up

> “Ask the Experts” Q&A

© 2014 Cigna

Molly Tatting Director of Health Care Reform, Cigna

Ken Silvay Accounting Senior Director, Cigna

Pam Hostetler Project Management Director, Cigna

FEATURED SPEAKERS

2


Reinsurance Fee Action Required: Are You Ready? Final countdown to November 15 compliance date: 30 days left!

3

Insurers and employers

must report their

membership counts

for 2014 and schedule

their fee payments.

A single combined

payment ($63), or the

first installment ($52.50)

per covered life is due.

If paying in two

installments, the

second installment

($10.50) per covered

life is due.

JANUARY

15 2015

NOVEMBER

15 2014

NOVEMBER

15 2015

© 2014 Cigna


4

PURPOSE Temporary three-year fee (2014-2016) designed to

lessen the impact of adverse selection in the individual

market

Reinsurance Fee Refresher

© 2014 Cigna

WHO PAYS Insured: Cigna will make both payments. No action is

required by employers

Self-funded: Employers are responsible

ESTIMATED

COST IMPACT

$63 PMPY in 2014 ($52.50/$10.50)

$44 PMPY in 2015 ($33.00/$11.00)

Estimated $25–$30 PMPY in 2016

PAYMENT

TIMING (Two options)

The first payment is due no later than January 15, 2015

The second payment is due no later than November 15, 2015

Insurers or employers may also opt for a single payment no later

than January 15, 2015


Cigna

Snapshot Methodology and Reporting

© 2014 Cigna 5

Employers

> Cigna will only use the snapshot method for

our insured business and for the reports we

provide to self-funded employers.

> Reports include total membership counts,

as well as average membership counts by

Tax Identification Number (TIN), and will be

accessed via existing reporting channels.

> Employers may use the snapshot

method or any other approved

methodologies.

> Cigna will not be able to provide

membership reports to support the

calculation if a different method is used.


“We made a carrier change to Cigna, and our funding type moved

from insured to self-funded on July 1.”

Question: Will I be responsible for paying the entire fee for 2014,

or will my prior carrier?

Common Unique Scenario FAQ

6 © 2014 Cigna

Timing of Change Employer Cigna

July 1 • Responsible for the period of

July – Sept

• The counting method the

employer chooses will

determine the reinsurance fee

• Will provide covered

lives date for the July 1

snapshot date

October 1 • Not responsible for payment

in 2014

• Will not provide

covered lives data

Responsibilities are dependent upon when the change was made!


“We made a carrier change to Cigna, and our funding type moved

from insured to self-funded on July 1.”

Calculation example with a July 1 change

Common Unique Scenario FAQ The snapshot calculation

7 © 2014 Cigna

January 1 snapshot April 1 snapshot July 1 snapshot

0 covered lives 0 covered lives 100 covered lives

(0 + 0 +100) ÷ 3 = Average membership

Average membership = 33.33

Multiplied by $63 (2014 fee) = $2,100


Pay.gov process and proactive

considerations


Pay.gov Overview

© 2014 Cigna 9

“One-stop” process via www.pay.gov

Collect data, calculate annual enrollment

count and prepare supporting documentation

Complete all steps and schedule payment

no later than 11/15/2014


Pay.gov Steps Insurers and self-funded employers register now to get started

© 2014 Cigna 10

Complete the "ACA Transitional Reinsurance Program Annual Enrollment

and Contribution Submission Form" (aka “The Form”)

* Not yet available on Pay.gov; Cigna will keep you posted 1

Upload supporting documentation 2

Enter payment information (e.g. payment date, banking information, etc.) 3

Self-funded employers – contact bank to create company IDs

(ALC+2 value) for automatic debits 4


Supporting Documentation

11 © 2014 Cigna

> Legal information, such as reporting entity

legal business name, federal tax identification

number, billing address

> Specific information, such as benefit year

and number of covered lives of reinsurance

contribution enrollees

> This information will be used by CMS to verify

gross enrollment counts entered on The Form


Enter bank

account

number

Enter bank

routing

number

Select

checking

or savings

account type

Enter the

account

holder name

Scheduling the Payment Complete the steps by November 15, 2014

12 © 2014 Cigna

Select the

payment date


Reinsurance Fee Checklist for Self-Funded Employers Actions to ensure compliance by November 15, 2014

© 2014 Cigna 13

Register on REGTAP: review site materials and resources

Questions along the way: submit to REGTAP as “Reinsurance Contributions”

Register for and attend “Reinsurance Contribution Submission Process”

CMS training throughout November 2014

Register on Pay.gov

Collect information needed to complete “The Form” and upload

supporting documentation

Estimate 2014 fee amount based on average covered lives

(the approximate fee to be paid)

Schedule the payment: combined payment or first installment no later than

January 15, 2015


Support for self-funded employers


Expanded Resources Introducing Cigna’s ASO PPACA Fees & Reporting Resources

Eligibility and Billing/Banking areas will:

> Provide resources, information and service

representatives to answer questions

> Assist employers with membership information

needed to report and calculate fee using

snapshot method

Available to help employers and broker partners:

> Understand the requirements and the process for

making Reinsurance Fee payments via Pay.gov

> Access and use Cigna membership reports to help

calculate Reinsurance Fee

15 © 2014 Cigna


Expanded Resources Meeting a variety of needs

Get in touch:

1-855-275-0555, (8:30 a.m.-7:30 p.m. ET, M-F)

ASO_PPACA_Fees&[email protected] Phone Line

and Email

Unique

scenarios

Membership

Reports

General

questions

Pay.gov

process

© 2014 Cigna 16


Communications and opportunities

to learn more


Communications Timeline

18 © 2014 Cigna

This week

Next

week

Z

Email to brokers

about expanded

resources

Z

Email to employers

on these expanded

resources Z

Email reminder

of upcoming

compliance dates


Opportunities to Learn More

© 2014 Cigna

19

> CMS “Reinsurance Contribution Submission Process

User Group Series” scheduled throughout

November 2014 to help self-funded employers to

prepare

> Visit www.REGTAP.info to register

> Reinsurance Fee Toolkit

> www.cigna.com/reinsurancefee-toolkit

> Reinsurance Fee ASO Membership Reporting Training

> ASO PPACA Fees and Reporting Resources

> 1-855-275-0555, (8:30 a.m.-7:30 p.m. ET, M-F)

> ASO_PPACA_Fees&[email protected]


http://www.regtap.info/

http://www.cigna.com/reinsurancefee-toolkit




http://www.cigna.com/assets/docs/about-cigna/informed-on-reform/reinsurance-fee-aso-membership-reporting-training.pdf




Wrap-up


Reminder: 2015 Compliance Activities

© 2014 Cigna 21

Reinsurance Fee: 11/15/14

> Payments:

– No later than 1/15/15 (combined or first installment) – No later than 11/15/15 for second installment

Health Plan Identifier: 11/5/14 > For health plans with annual receipts of $5 million or more Minimum Essential Coverage (MEC) reporting requirements

> Missing SSN outreach by 12/31/14

> MEC reporting on 2015 coverage due January, 2016 Employer Mandate: 1/1/15 > For 100+ FTE in 2015 > Large Employer reporting on 2015 health benefits January, 2016


© 2014 Cigna

Resources

Visit our website

www.InformedonReform.com

> Now optimized for desktop,

tablet or mobile devices

> News alerts, fact sheets,

timeline and FAQs

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within a few days under

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Look for our follow-up email with

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You will also receive a brief survey.

22


http://www.informedonreform.com/

Ask the Experts

Q&A


Ted: Any suggestions on how to maintain this

template, but weave these two URLs in?

www.cigna.com/reinsurancefee-toolkit

http://www.cigna.com/health-care-reform/reinsurance-assessment-toolkit




Offered by: Connecticut General Life Insurance Company or Cigna Health and Life Insurance Company.

“”Cigna” and the “Tree of Life“ logo are registered service marks of Cigna Intellectual Property, Inc., licensed for use by Cigna Corporation and its operating subsidiaries. All

products and services are provided by or through such operating subsidiaries, including Connecticut General Life Insurance Company and Cigna Health and Life Insurance

Company, and not by Cigna Corporation. All models are used for illustrative purposes only.

10/14 © 2014 Cigna. Some content provided under license.

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EMPLOYER READINESS ON UPCOMING … Readiness on Upcoming Requirements ... Molly Tatting Director of Health ... EMPLOYER READINESS ON UPCOMING REQUIREMENTS PART 1