Independence Blue Cross has issued two updates, both related to Medicare Secondary Payer. In one, they acknowledge that clients with fewer than 100 employees recently received letters about Medicare Secondary Payer with incorrect customer names. If you have received one of these letters, you can ignore it. They will be sending corrected letters shortly. The letter asks that you go online to complete MSP/MLR information which, in short, is a brief survey to supply employee counts. This is required in order to allow IBX to comply with the Federal TEFRA/DEFRA laws (whether Medicare or the group is primary for an employee over 65) and the Affordable Care Act which limits the carrier’s administrative costs and, therefore, limits the amount of premium they can charge.
The second letter, also Medicare related, incorrectly advises that anyone eligible for Medicare musts enroll in Parts A and B and, if they fail to do so, warns that the plan will only pay the balance as if the employee had Parts A and B. If you have more than 20 employees (not the count of insured, but total employees, including the calculation of part time), your Medicare eligible employees DO NOT have to enroll in Parts A and B and your group plan with IBX is primary. If you employ fewer than 20, Medicare Parts A and B IS primary and it is important that a Medicare-eligible employee signs up for Parts A and B.
As always, if you have any questions, please contact us!