15th Side Billing

15th Side Billing Overview

• As part of platform transformation IBC will eliminate 15th side billing.

• Customers will be transitioned upon renewal beginning with January 2014 renewals.

• Customers will transition to new billing arrangements during the first two months on the new platform.

How it Works

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February 1, 2014

February 15, 2014

February 1, 2015

Effective on new platform.

Data is still active on MHS.

Membership data is effective on new system.

Group renewal and membership

renewal dates become one

again.

15th Side Billing Customers Impacts

For the first year following Platform Transformation,

customers will:

For every year following Platform Transformation,

customers will:

• Receive a pro-rated 15-day invoice as their first invoice on the new platform; each invoice thereafter will cover a full month

• Have a shorter benefit year (50 weeks)

• Experience rate changes in 2015 two weeks earlier than in 2014

• Be billed with a due date of the first of the month; this means paying insurance premiums 15 days earlier than they do currently.

• Have a first-of-the-month yearly renewal rate

How Will this Affect Members?

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Out-of-Pocket Maximum: Usage Limits:

• Once a member reaches their out-of-pocket maximum, IBC will cover 100% of the costs considered medically necessary.

• For the first year after migration, members will have two weeks less to meet their out-of-pocket maximum.

• Be billed with a due date of the first of the month; this means paying insurance premiums 15 days earlier than they do currently.

• Have a first of the month yearly renewal rate

How Will this Affect New Business?

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IBC will continue to quote 15-side business to prospects who request a group effective date on the 15th of the month.

Here’s how it works:

A group’s benefit period will be 50

weeks for the first year, the prospect will

be quoted for a 50 week contract ending on the last day of the

prior month the following year

New customers are set up under group

numbers with the first of the month effective dates for first of the

month products

Membership is set up with 15th of the month effective dates, or any date requested, in the

applicable group numbers

Customers are invoiced with a due

date of the first of the covered month

Support From IBC

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• IBC will provide educational materials and support to prepare 15th side customers for the change to a billing cycle

• Sales representatives have fact sheets and FAQs to explain changes to customers