Carrier News

Humana’s Options for Transitional Relief Groups to Extend Coverage

Under federal guidelines, small group employers can maintain their current medical plans and continue to be medically underwritten until December 31, 2017. Beginning on January 1, 2018, all non-grandfathered medical plans must be community rated and ACA-compliant.

Humana will offer transitional relief renewal options to groups that renew on Jan 1, 2017 and groups renewing Feb-Oct 2017 that elect a short plan year (explained below). See official announcement. At renewal in 2018, transitional relief will no longer be available to any group.

Long Plan Year Option for Groups Renewing Oct – Dec 2016

  • Groups may elect a longer plan year at renewal in 2016 to extend the coverage period to Jan 1, 2018.
  • Electing the Long Option will not change the medical plan premium rates offered in the 2016 renewal letter. In other words, the renewal rates will apply to the additional months added to the plan year.
  • Groups must complete the Long Option Request form and email it to by the 2016 renewal date. We ask that you notify your Kilpatrick service team about the change so we can update our records.

Short Plan Year Option for Groups Renewing Feb 1 – Oct 1, 2017

  • Groups may elect a shortened plan year in 2017 to move to a Jan 1, 2018 renewal date.
  • Groups must notify Humana of the election at least 5 months prior to the 2017 renewal date so that Humana can factor in the appropriate rate reduction for the shortened plan year.
  • Groups that do not elect a short plan year can only be offered ACA-compliant renewal options in 2017 due to CMS restrictions.
  • When Humana underwrites the renewal, they will first compute the rate adjustment due then reduce the adjustment by the factor shown in the table below.
  • Groups must complete the Short Option Request form and email it to before the deadline. We ask that you notify your Kilpatrick service team about the change so we can update our records.
  • Read the Short Option Rate Guide for official details.

Summary of Options by Upcoming Renewal Date

Renewal Date Length of Coverage Period Rate Adjustment Request Deadline
10/1/2016 15 months 0.00% 9/30/2016
11/1/2016 14 months 0.00% 10/31/2016
12/1/2016 13 months 0.00% 11/30/2016
1/1/2017 12 months n/a n/a
2/1/2017 11 months -0.75% 8/31/2016
3/1/2017 10 months -1.50% 9/30/2016
4/1/2017 9 months -2.00% 10/31/2016
5/1/2017 8 months -2.50% 11/30/2016
6/1/2017 7 months -3.00% 12/31/2016
7/1/2017 6 months -4.00% 1/31/2017
8/1/2017 5 months -5.00% 2/28/2017
9/1/2017 4 months -6.00% 3/31/2017
10/1/2017 3 months -6.50% 4/30/2017


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