Dental, Vision and The Health Industry Fee
I’m sure I don’t need to educate you on the many varied fees associated now with the PPACA. However, some of you may have experienced a phone call from Companion clients asking what the new line item is that has showed up in their January bills. Dental and vision plans are considered part of the health industry and therefore they are responsible for an industry fee just like the health carriers.
The fee is based on each carrier’s share of the overall premium base and it is assessed relative to insured plans. Each carrier calculates a bit differently what their share is they have to pay and how this will be reflected in rates. Below is an outline of our dental and vision carriers, their fees and how this will be passed on to the members.
· Companion Life--Companion has separated its industry fee as a separate line item on the bills. However, its renewal and new business proposal rates include the fee so there are no surprises when the final bill arrives. The Michigan Medicaid Claims tax is a separate line item on the Companion bills aside from this ACA industry fee.
· Kansas City Life--Both the ACA and Michigan Medicaid Claims Tax are included in KCL's rates.
· MetLife/MMA--The ACA industry fee is included in new business and renewal rates. The Medicaid tax is billed separately every quarter.
· Delta Dental--The ACA industry fee is included in new business and renewal rates. The Medicaid tax is billed separately monthly.
Clear as mud huh? If you have any further questions or want to discuss these fees over a coffee, sandwich or a fifth of whiskey and pitcher of beer, contact me and I’ll be happy to come see you!