12/08/2010
Jan. 1 brings new delinquency policy
Effective Jan. 1, 2011, we're modifying our delinquency process for groups on (Regence Innova®, Regence EngageSM, Regence ActivateSM and Regence HSA Healthplan 2.0SM). Our goal is to provide a consistent and more uniform delinquency policy for all groups.
This process will reduce financial risk, bring us in line with other carriers and meet regulatory requirements, as well as provide more frequent and timely communications regarding delinquency to your clients. The following outlines the differences between our current process as compared to the new policy.
Current Process
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New Process
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Prior Month
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Prior Month
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5th - 10th
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Bill Sent Prior to Due Date
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5th - 10th
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Bill Sent Prior to Due Date
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Current Month
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Current Month
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1st
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Premium Due Date
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1st
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Premium Due Date
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10th
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Delinquency Notice
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7th
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Billing Reminder Mailed
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15th - 20th
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Phone Calls Placed to Group
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20th
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Demand Notice
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20th
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Delinquent Notice (cc to Producer/Acct Exec)
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25th
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Phone Calls Placed to Group
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25th
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Final Notice of Cancellation (cc to Producer/Acct Exec)
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Month Following Due Date
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30th
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Letter of Termination (cc to Producer/Acct Exec)
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5th - 10th
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Group Termination
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You'll notice that the delinquency timeline is 30 days and that our groups will hear from us more often during that 30-day period (including billing reminders, delinquency notices, cancellation notices, termination letters and phone calls). Your clients will also receive a Payment Process Reminder notice as part of our new process.
The process will also be more visible to you. Both account executives and producers will be copied on the delinquency notices and the cancellation notice (although this part of the process may not be in place by Jan. 1).
Terminated groups will be eligible for reinstatement with our approval, subject to the following general conditions:
- They must request reinstatement within 30 days after termination.
- The group's premium must be paid in full through the most current month prior to the reinstatement being processed.
- No more than two reinstatements will be allowed within a rolling 12-month period.
Thank you for your continued support. We hope that this new policy will provide a more streamlined and effective method for you and your groups to work with us in handling past-due accounts.
If you have any questions, please talk to your Regence sales contact.
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