Please Note: Producers will receive this notice in two business days. Important information about Individual plans

We want to let you know about two changes to our Individual Medically Underwritten products. The first is an increase in the monthly rates for our Keystone Health Plan East, Inc. Individual Medically Underwritten HMO plans, a change that will take effect July 1, 2010. The second concerns changes to the benefits. We want to provide you with an overview of the updates we are making to these plans, including a coverage change for self-injectable medications.

Individual HMO rate increase
The Pennsylvania Insurance Department recently approved a 9.9 percent rate increase that will affect monthly premium rates for our Individual Medically Underwritten HMO plans, beginning July 1, 2010. Members’ new rates may also reflect an additional adjustment for those members who have moved into a new age band since our last rate increase. We anticipate that about 30 percent of our members will experience a base rate increase coupled with an age band change. Rates are based on the age of the oldest enrolled family member as of July 1, 2010.As health care costs continue to rise and our members’ utilization of health care services has steadily increased, it is now necessary to increase premiums to pay for the additional claims. We carefully consider all options before increasing premiums, and we have not raised Individual HMO rates since May 2007.Members who pay their premiums through a monthly automatic bank withdrawal, will need to make note of the new amount that will be deducted from their accounts beginning July 1, 2010. The increased premium will be reflected in the June billing notice.As you know, new Individual HMO members are entitled to a rate guarantee for the first six months of their coverage. This chart shows the effective dates for new members subject to the rate guarantee and when their rate increase will be implemented.

Benefits changes
Periodically, we review and evaluate our benefits plans and, as needed, update and clarify our benefits. The Summary of Benefits provides a brief description of each change. One of the benefits changes, which will take effect July 1, 2010, pertains to coverage for self-injectable drugs. This change is similar to the change we made to group commercial products in January 2010, and it’s intended to better manage costs. Self-injectable drugs will be available under the prescription drug benefit and will no longer be covered under the medical benefits. More information on this change can be found in the self-injectables flyer.Please note that a very limited number of current members are affected by the change in self-injectable drug coverage. IBC care managers will reach out by telephone and letter to members affected by this change to provide assistance in choosing an alternate plan. All members will be notified of these benefits changes in their rate increase notification and will also receive an official amendment to their benefits documents.

Other plan options available
We realize that some members may want to consider changing their current coverage to one of our other individual medically underwritten HMO plans. Members will receive cost-saving alternatives in their rate increase notification as well as a benefits overview to help them compare plans. If members want to select a new plan, they will need to fill out and return the Plan Change in Coverage Form that will be included with their notification. Members enrolled in the $5,000 deductible option will not receive a benefits overview or Plan Change in Coverage Form in their notification packet because this is the lowest-cost individual medically underwritten HMO option currently available.We will notify Individual HMO members of the rate increase and benefits changes in May, and we will provide more information to you prior to that mailing. Members with a six-month rate guarantee will be notified of the benefits changes and pending rate increase in the initial communication and will receive a second notification with the specifics of their rate change 45 days prior to the expiration of their rate guarantee and the effective date of their new rate. Individual HMO members who are 65 or older by July 1, 2010, will receive a custom letter that explains that their rate may be lower if they also have Medicare coverage.If you have any questions about the rate increase or benefits changes, please contact your Independence Blue Cross account executive. 

Independence Blue Cross | 1901 Market Street | Philadelphia, PA 19103To ensure you receive your Independence Blue Cross emails, please add marketing.communications@ibx.com to your address book. Independence Blue Cross offers products directly, through its subsidiaries Keystone Health Plan East and QCC Insurance Company, and with Highmark Blue Shield. Independent licensees of the Blue Cross and Blue Shield Association.View our Privacy Policy.