Initial Rate Notices - Use the Subsidy Tool

Initial Renewal Rate Notices for members who receive a subsidy through the marketplace are just estimates.  The Centers for Medicare and Medicaid require providers send renewal notices in time to be received by November 1^st.  The problem is, the new subsidy amounts aren’t reflected in that initial rate notice.  Subsidies are based on premiums.  Back in July, BCBSNC® filed to reduce 2020 rates by -5.2% with the NC Department of Insurance.

Premiums are going down next year which means the subsidy is also going down.  The initial notices reflect 2020 reduced premiums with subsidies based on 2019 higher premiums.  So don’t get too excited about your estimate.

According to the IRS, the premium tax credit is generally equal to the premium for the second lowest cost silver plan available through the Marketplace that applies to the members of your coverage family, minus a certain percentage of your household income.  When premiums go down, the premium tax credit (subsidy) goes down as well.  

If you want to get a better estimate for 2020, the subsidy tool is available again this year.

www.bcbsnc.com/subsidy

As always, if you have questions, don't hesitate to reach out to me.  You can call me directly or choose a time on my calendar.  Open enrollment begins November 1st.

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