California Health News

Blue Shield to automatically enroll members in Obamacare plans

Kevin Knauss

Blue Shield of California

Blue Shield of California has sent notices to 2,062 consumers of their grandfathered health plans notifying them they will be automatically enrolled in Obamacare plans for 2017. Blue Shield will no longer be offering 17 of their grandfathered individual and family plans in 2017. Blue Shield stated that the grandfathered plans are being withdrawn from the market place due to low enrollment.

Blue Shield closes 17 grandfathered plans

Blue Shield announced that they will be transitioning members of these closed plans into the health plans with the highest benefit coverage and the lowest monthly premium for an effective date of January 1, 2017.  Essentially, Blue Shield will match the grandfathered plan to the most equivalent ACA compliant metal tier health plan being offered. For example, current members in a grandfathered plan with a $2,000 deductible may be to be transitioned into a new Silver plan with a $2,500 deductible.

Blue Shield will transition members in closed plans to new Obamacare plans

Consumers in Blue Shield grandfathered plans can accept the transition or make a different plan selection. Those consumers affected must make different plan by December 15, 2016, for a January 1, 2017 start date.

No action needs to be taken on the part of members of current grandfathered plans. When Open Enrollment begins in the fall, consumers in these discontinued grandfathered plans can make changes. Consumers should consult with an agent to see if they qualify for the tax credits through Covered California for the new Blue Shield plans being offered to them. They should also make a careful comparison between the benefits of their grandfathered plan with the new health plan offered.

In-Network providers may change

It is also important for consumers to research if their current providers (doctors, hospitals, laboratories, etc.) are in-network with the new Blue Shield plans that use their Exclusive PPO Network. If a consumer is transitioned to a new Obamacare plan and continues to see a provider who is not in the Exclusive PPO Network, the consumer may be subject to higher cost sharing for those services such as a higher deductible and coinsurance.

Special Enrollment Period

Because Blue Shield is closing these grandfathered plans, beginning on January 1, 2017, members of these plans will have a Special Enrollment Period that gives them the opportunity to remain in their new transitioned plan, that Blue Shield assigned them, or select a different plan. The consumer can also switch to a completely different health insurance carrier during this Special Enrollment Period (SEP). The SEP will last until March 1, 2017 or 60 days after the grandfathered coverage terminates. This means that members of Blue Shield grandfathered plans will be able to make health plan changes after the standard Open Enrollment ends on January 31, 2017.

Blue Shield Grandfathered Plan Closures