Highmark's 'grandmothered' health insurance renewals promise savings

Apr 25, 2014, 10:15am EDT

Some small employers could get a break on Highmark's health insurance renewal rates, but just for a year.

On Thursday, Highmark said employers with two to 50 employees would be able to renew medically underwritten coverage for a year if their plans expire July through December. These plans don't comply with the Affordable Care Act, but the federal government authorized states to allow extension of existing plans through 2017.

Pennsylvania was among nine states that permit such renewals.

Highmark's so-called grandmothered renewals don't include any new products, 'but most will pay less' by renewing existing plans, said Kareem Corbin, Highmark's vice president of regional sales, small group segment. That's because ACA plans are required to use a different rating methodology that drives up premiums - as much as 300 percent, in some cases.

UPMC Health Plan was the first in the region to offer such renewals for plans that expire April through June. Pittsburgh area brokers said that Aetna/Coventry was also considering offering non-ACA compliant coverage, but a company spokesman said Thursday he could not comment on future products.

Kris Mamula covers health care, insurance and employee benefits for the Pittsburgh Business Times. Contact him at kmamula@bizjournals.com or 412-208-3825.