Frequently Asked Questions


COVID-19 FAQ

The Small Business Association of Michigan is committed to helping business owners navigate the very complex and very fluid issues regarding the COVID-19 crisis. These FAQs are meant to serve as a guide. Please consult your attorney or HR professional. Members can also utilize the SBAM Ask An Expert hotline or simply email sbam@sbam.org for assistance. 

Mandated Closure Guidance

Unemployment Questions

Loans & Finance

Families First/FMLA

Health-Related Issues

Health Insurance


Mandated Closure Guidance

Which businesses must close?

On March 23, 2020, Governor Whitmer signed the “Stay Home, Stay Safe” Executive Order (EO 2020-21), directing all Michigan businesses and operations to temporarily suspend in-person operations that are not necessary to sustain or protect life. For purposes of this order, workers who are necessary to conduct minimum basic operations are those whose in-person presence is strictly necessary to allow the business or operation to maintain the value of inventory and equipment, care for animals, ensure security, process transactions (including payroll and employee benefits), or facilitate the ability of other workers to work remotely. Learn more about the essential vs. non-essential services.

Can My Workers Leave Home For Work?

You may designate the following workers to come in to work IF they cannot do their work remotely. Emailing them or listing their jobs on a website is enough to designate them. See this guidance from the state. 

What are the general 'stay home' guidelines?

The governor's office put together this reference guide to help citizens understand what is acceptable.

The State of Michigan has issued an FAQ regarding specific types of businesses. 

Click here.


Unemployment Guidance

If I have hourly employees that work various hours depending on the work load, how do I calculate their wages?

Whatever their regular rate of pay was before their hours were reduced due to coronavirus and then use the 2/3rd their regular rate that would be capped in the aggregate.

I have owners that are also employees but now cannot work remotely. Can they go on FMLA or are they exempt?

If the owners were reported on the quarterly report of wages they would pass the first qualification test. Secondly the UI applicant must be looking for and available for work. The emergency sick paid act local quarantine or isolation order requires employers to provide that benefit after all paid sick time off benefits apply.

If team members have already filed for unemployment and now should be FMLA, what process do I take to get them on the right path?

FMLA only matters for those with school age kids. For the rest of the employees, UIA is the only answer. I believe that leave of absence without pay is an internal designation. The unemployment filing does not delineate, so as long as your records show them as on leave, they should still qualify, even though they filed for Unemployment. 

How do I communicate a layoff?

The American Society of Employers has a sample script you can use to speak with your employee(s). 

Can a sole proprietor file for unemployment?

Following are the general rules pertaining to eligibility for unemployment compensation. There may be exceptions or other available unemployment insurance programs that a sole proprietor my elect to participate in. Please contact Michigan’s Unemployment Insurance Agency for more information.

Michigan’s unemployment compensation law provides required coverage to workers that the employer reports on its quarterly wage report to the state.  Only workers reported (as required) are eligible for unemployment compensation benefits upon loss of work. Further, a worker that becomes unemployed and eligible for unemployment benefits must be searching for and available for work.

Sole proprietors that work under a legal corporation structure and are paid by that entity may be eligible for benefits if their wages are being reported (and taxed) under state and federal law and they otherwise qualify (meet the required benefit week and income eligibility level). Sole proprietors that are not reporting their wages  because as sole proprietors they are not necessarily required to do so would  not be eligible to receive benefits. Further, as stated above any claimant that may be eligible for unemployment benefits must also be searching for and available for other employment.  This may be a barrier to the owner that is dedicated to his or her own business while unemployed.               

To summarize: 1. The business owner must be an employee of his or her company and have reported (and paid taxes) that they are being paid wages as an employee and 2. Be looking for and available for work. This would have to be work beyond work associated with their own business.

The State is also seeking solutions for self-employed workers and independent contractors who traditionally do not have access to unemployment insurance. The governor has requested that President Trump issue a Major Disaster Declaration so that Individual Assistance and Disaster Unemployment Assistance through FEMA may be made available to additional Michiganders affected by the COVID-19 pandemic.

How will my business be impacted if I need to layoff workers?

State Provides Guidance to Employers Contemplating Potential Layoffs

Under the governor’s order, unemployment benefits would be extended to: 

  • Workers who have an unanticipated family care responsibility, including those who have childcare responsibilities due to school closures, or those who are forced to care for loved ones who become ill. 

  • Workers who are sick, quarantined, or immunocompromised and who do not have access to paid family and medical leave or are laid off. 

  • First responders in the public health community who become ill or are quarantined due to exposure to COVID-19. 

Under the order, an employer or employing unit must not be charged for unemployment benefits if their employees become unemployed because of an executive order requiring them to close or limit operations.  

What is workshare?

Work Share is a program that permits employers to maintain operational productivity during declines in regular businss activity rather than laying off workers. Learn more here


Loans, Taxes & Finance

Are any grants available for small business?

The Michigan Small Business Relief Program authorizes the MEDC provide up to $20 million in support for small businesses. The funding is divided between $10 million in small business grants and $10 million in small business loans to support businesses facing drastic reductions in cash flow and the continued support of their workforce.

The $10 million in grant funding will be provided to local or nonprofit economic development organizations throughout the state to provide grants up to $10,000 each to support certain small businesses that have realized a significant financial hardship as a result of the COVID-19 virus.

Now Available! Apply for the Michigan Small Business Relief Program

The Michigan Small Business Relief Program grants are administered by 15 local and nonprofit economic development organizations (EDOs). To apply, visit this website and then find the EDO below that represents the county in which your business is located. There is a deadline to apply and it varies among county, so apply as soon as possible!

How do I apply for the SBA Economic Injury Disaster Loan?

Click here to apply for the loan. Please view this SBA Disaster Loan Fact Sheet for more information.

SBA Economic Injury Disaster Assistance Loans in Response to the Coronavirus

  • The U.S. Small Business Administration is offering low-interest federal disaster loans for working capital to small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19). These SBA makes loans are available to small businesses and private, non-profit organizations territory to help alleviate economic injury caused by the Coronavirus (COVID-19).

  • SBA’s Economic Injury Disaster Loans offer up to $2 million in assistance and can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.

  • These loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. The interest rate is 3.75% for small businesses. The interest rate for non-profits is 2.75%.

  • SBA offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years. Terms are determined on a case-by-case basis, based upon each borrower’s ability to repay.

  • For additional information, please contact the SBA disaster assistance customer service center. Call 1-800-659-2955 (TTY: 1-800-877-8339) or e-mail disastercustomerservice@sba.gov.​

What other sources of funding may be available?

Federal and State Financial Relief for Small Businesses

On Wednesday, March 25, 2020 and on March 27, 2020, the U.S. Senate and the House of Representatives passed the Coronavirus Aid, Relief and Economic Security (CARES) Act and the President just signed it into law. The CARES Act creates several new Federal Small Business Administration (SBA) loan programs or amendments to existing programs that could assist businesses that have been impacted by the COVID-19 pandemic with their day-to-day operating expenses.    

CARES Act Loans

The CARES Act also creates an SBA loan program offering forgivable loans of up to $10 million to any “business concern,” including independent contractors and sole proprietors, with 500 or fewer employees, (or a greater number of employees if a greater number has been established by SBA size standards for the industry in which the business operates). The actual amount of the loan is the lesser of $10 million or the average monthly payroll for the business multiplied by 2.5. The loan is 100% SBA backed. The loan can be used for payroll, group health, mortgages, rent, debt service and utilities. These loans will not require security or a guarantee, will not require that an applicant be unable to obtain financial assistance elsewhere and the SBA is waiving all fees related to applying for such loans. Interest rates are proposed to be no more than 4%. The loan period begins February 15, 2020 and ends June 30, 2020.

It is anticipated that these loans will be issued by SBA approved lenders (i.e., banks). Lenders will be able to defer payments on the principal and interest of the loan for a minimum of six months and up to one year. In addition, the loans are forgivable in an amount up to the amount paid by the business for payroll, rent, utilities and mortgage interest during the eight weeks after origination of the loan. The amount forgiven will be reduced by a formula related to layoffs or salary or wage reductions during the eight-week period after origination of the loan. A borrower is able to avoid this reduction by rehiring employees and eliminating the reduction in salary. It is proposed that lenders will be reimbursed by SBA for making these loans: 5% for loans up to $350,000; 3% for loans over $350,000 and less than $2 million; and 1% for loans $2 million and over. The SBA has stated it plans to release guidance related to the loans approximately 48-72 hours after the President signs the bill into law, though it has indicated that it will just be using its standard Section 7(a) forms, albeit slightly modified for this situation. Application information and other materials may be made available by the SBA prior to that through its COVID-19 website. We are hoping the SBA’s guidance will include whether religious organizations are eligible for the loans. 

The CARES Act is also offering grants to small business development centers and women’s business centers. These grants are intended to provide education and training to small businesses. 

Potential borrowers under the CARES Act should confirm such borrowing with existing lenders to be certain that the CARES Act loan does not violate a covenant of existing loan agreements.

Express Loans

The CARES Act increases the maximum amount for a SBA Express Loan from $350,000 to $1 million through December 31, 2020.

Is the tax deadline delayed? 

The federal and state tax filing deadline has been extended to July 15, 2020.

Taxpayers can also defer federal income tax payments due on April 15, 2020, to July 15, 2020, without penalties and interest, regardless of the amount owed. This deferment applies to all taxpayers, including individuals, trusts and estates, corporations and other non-corporate tax filers as well as those who pay self-employment tax.

Taxpayers do not need to file any additional forms or call the IRS to qualify for this automatic federal tax filing and payment relief.

Penalties and Interest Waived on Michigan Quarterly Filings

The Department of Treasury is waiving penalty and interest for the late payment of tax or the late filing of the return due on March 20, 2020. The waiver will be effective for a period of 30 days; therefore, any return or payment currently due on March 20, 2020 may be submitted to the Department without penalty or interest through April 20, 2020. The waiver is limited to sales, use, and withholding payments and returns due March 20, 2020.


Families First/FMLA

Go here for a comprehensive FAQs list from the U.S. Department of Labor. 

What is the effective date of the Families First Coronavirus Response Act (FFCRA), which includes the Emergency Paid Sick Leave Act and the Emergency Family and Medical Leave Expansion Act?

The FFCRA’s paid leave provisions are effective on April 1, 2020, and apply to leave taken between April 1, 2020, and December 31, 2020.

Under the FFCRA, an employee qualifies for paid sick time if the employee is unable to work (or unable to telework) due to a need for leave because the employee:

  1. is subject to a Federal, State, or local quarantine or isolation order related to COVID-19;

  2. has been advised by a health care provider to self-quarantine related to COVID-19;

  3. is experiencing COVID-19 symptoms and is seeking a medical diagnosis;

  4. is caring for an individual subject to an order described in (1) or self-quarantine as described in (2);

  5. is caring for a child whose school or place of care is closed (or child care provider is unavailable) for reasons related to COVID-19; or

  6. is experiencing any other substantially-similar condition specified by the Secretary of Health and Human Services, in consultation with the Secretaries of Labor and Treasury.

Under the FFCRA, an employee qualifies for expanded family leave if the employee is caring for a child whose school or place of care is closed (or child care provider is unavailable) for reasons related to COVID-19.

As an employer, how do I know if my business is under the 500-employee threshold and therefore must provide paid sick leave or expanded family and medical leave?

You have fewer than 500 employees if, at the time your employee’s leave is to be taken, you employ fewer than 500 full-time and part-time employees within the United States, which includes any State of the United States, the District of Columbia, or any Territory or possession of the United States. In making this determination, you should include employees on leave; temporary employees who are jointly employed by you and another employer (regardless of whether the jointly-employed employees are maintained on only your or another employer’s payroll); and day laborers supplied by a temporary agency (regardless of whether you are the temporary agency or the client firm if there is a continuing employment relationship). Workers who are independent contractors under the Fair Labor Standards Act (FLSA), rather than employees, are not considered employees for purposes of the 500-employee threshold.

Typically, a corporation (including its separate establishments or divisions) is considered to be a single employer and its employees must each be counted towards the 500-employee threshold. Where a corporation has an ownership interest in another corporation, the two corporations are separate employers unless they are joint employers under the FLSA with respect to certain employees. If two entities are found to be joint employers, all of their common employees must be counted in determining whether paid sick leave must be provided under the Emergency Paid Sick Leave Act and expanded family and medical leave must be provided under the Emergency Family and Medical Leave Expansion Act.

In general, two or more entities are separate employers unless they meet the integrated employer test under the Family and Medical Leave Act of 1993 (FMLA). If two entities are an integrated employer under the FMLA, then employees of all entities making up the integrated employer will be counted in determining employer coverage for purposes of expanded family and medical leave under the Emergency Family and Medical Leave Expansion Act.

If I am a private sector employer and have 500 or more employees, do the Acts apply to me?

No. Private sector employers are only required to comply with the Acts if they have fewer than 500 employees.[1]

If providing child care-related paid sick leave and expanded family and medical leave at my business with fewer than 50 employees would jeopardize the viability of my business as a going concern, how do I take advantage of the small business exemption?

To elect this small business exemption, you should document why your business with fewer than 50 employees meets the criteria set forth by the Department, which will be addressed in more detail in forthcoming regulations.

You should not send any materials to the Department of Labor when seeking a small business exemption for paid sick leave and expanded family and medical leave.

How do I count hours worked by a part-time employee for purposes of paid sick leave or expanded family and medical leave?

A part-time employee is entitled to leave for his or her average number of work hours in a two-week period. Therefore, you calculate hours of leave based on the number of hours the employee is normally scheduled to work. If the normal hours scheduled are unknown, or if the part-time employee’s schedule varies, you may use a six-month average to calculate the average daily hours. Such a part-time employee may take paid sick leave for this number of hours per day for up to a two-week period, and may take expanded family and medical leave for the same number of hours per day up to ten weeks after that.

If this calculation cannot be made because the employee has not been employed for at least six months, use the number of hours that you and your employee agreed that the employee would work upon hiring. And if there is no such agreement, you may calculate the appropriate number of hours of leave based on the average hours per day the employee was scheduled to work over the entire term of his or her employment.

When calculating pay due to employees, must overtime hours be included?

Yes. The Emergency Family and Medical Leave Expansion Act requires you to pay an employee for hours the employee would have been normally scheduled to work even if that is more than 40 hours in a week. 

However, the Emergency Paid Sick Leave Act requires that paid sick leave be paid only up to 80 hours over a two-week period. For example, an employee who is scheduled to work 50 hours a week may take 50 hours of paid sick leave in the first week and 30 hours of paid sick leave in the second week. In any event, the total number of hours paid under the Emergency Paid Sick Leave Act is capped at 80.

If the employee’s schedule varies from week to week, please see the answer to Question 5, because the calculation of hours for a full-time employee with a varying schedule is the same as that for a part-time employee.

Please keep in mind the daily and aggregate caps placed on any pay for paid sick leave and expanded family and medical leave as described in the answer to Question 7.

Please note that pay does not need to include a premium for overtime hours under either the Emergency Paid Sick Leave Act or the Emergency Family and Medical Leave Expansion Act.

As an employee, how much will I be paid while taking paid sick leave or expanded family and medical leave under the FFCRA?

It depends on your normal schedule as well as why you are taking leave.

If you are taking paid sick leave because you are unable to work or telework due to a need for leave because you (1) are subject to a Federal, State, or local quarantine or isolation order related to COVID-19; (2) have been advised by a health care provider to self-quarantine due to concerns related to COVID-19; or (3) are experiencing symptoms of COVID-19 and are seeking medical diagnosis, you will receive for each applicable hour the greater of:

In these circumstances, you are entitled to a maximum of $511 per day, or $5,110 total over the entire paid sick leave period.

If you are taking paid sick leave because you are: (1) caring for an individual who is subject to a Federal, State, or local quarantine or isolation order related to COVID-19 or an individual who has been advised by a health care provider to self-quarantine due to concerns related to COVID-19; (2) caring for your child whose school or place of care is closed, or child care provider is unavailable, due to COVID-19 related reasons; or (3) experiencing any other substantially-similar condition that may arise, as specified by the Secretary of Health and Human Services, you are entitled to compensation at 2/3 of the greater of the amounts above.

Under these circumstances, you are subject to a maximum of $200 per day, or $2,000 over the entire two week period.

If you are taking expanded family and medical leave, you may take paid sick leave for the first ten days of that leave period, or you may substitute any accrued vacation leave, personal leave, or medical or sick leave you have under your employer’s policy. For the following ten weeks, you will be paid for your leave at an amount no less than 2/3 of your regular rate of pay for the hours you would be normally scheduled to work. The regular rate of pay used to calculate this amount must be at or above the federal minimum wage, or the applicable state or local minimum wage. However, you will not receive more than $200 per day or $12,000 for the twelve weeks that include both paid sick leave and expanded family and medical leave when you are on leave to care for your child whose school or place of care is closed, or child care provider is unavailable, due to COVID-19 related reasons.

To calculate the number of hours for which you are entitled to paid leave, please see the answers to Questions 5-6 that are provided in this guidance.

  • your regular rate of pay,

  • the federal minimum wage in effect under the FLSA, or

  • the applicable State or local minimum wage.

What is my regular rate of pay for purposes of the FFCRA?

For purposes of the FFCRA, the regular rate of pay used to calculate your paid leave is the average of your regular rate over a period of up to six months prior to the date on which you take leave.[2] If you have not worked for your current employer for six months, the regular rate used to calculate your paid leave is the average of your regular rate of pay for each week you have worked for your current employer.

If you are paid with commissions, tips, or piece rates, these wages will be incorporated into the above calculation.

You can also compute this amount for each employee by adding all compensation that is part of the regular rate over the above period and divide that sum by all hours actually worked in the same period.

May I take 80 hours of paid sick leave for my self-quarantine and then another amount of paid sick leave for another reason provided under the Emergency Paid Sick Leave Act?

No. You may take up to two weeks—or ten days—(80 hours for a full-time employee, or for a part-time employee, the number of hours equal to the average number of hours that the employee works over a typical two-week period) of paid sick leave for any combination of qualifying reasons. However, the total number of hours for which you receive paid sick leave is capped at 80 hours under the Emergency Paid Sick Leave Act. 

If I am home with my child because his or her school or place of care is closed, or child care provider is unavailable, do I get paid sick leave, expanded family and medical leave, or both—how do they interact?

You may be eligible for both types of leave, but only for a total of twelve weeks of paid leave. You may take both paid sick leave and expanded family and medical leave to care for your child whose school or place of care is closed, or child care provider is unavailable, due to COVID-19 related reasons. The Emergency Paid Sick Leave Act provides for an initial two weeks of paid leave. This period thus covers the first ten workdays of expanded family and medical leave, which are otherwise unpaid under the Emergency and Family Medical Leave Expansion Act unless the you elect to use existing vacation, personal, or medical or sick leave under your employer’s policy. After the first ten workdays have elapsed, you will receive 2/3 of your regular rate of pay for the hours you would have been scheduled to work in the subsequent ten weeks under the Emergency and Family Medical Leave Expansion Act.

Please note that you can only receive the additional ten weeks of expanded family and medical leave under the Emergency Family and Medical Leave Expansion Act for leave to care for your child whose school or place of care is closed, or child care provider is unavailable, due to COVID-19 related reasons.

Can my employer deny me paid sick leave if my employer gave me paid leave for a reason identified in the Emergency Paid Sick Leave Act prior to the Act going into effect?

No. The Emergency Paid Sick Leave Act imposes a new leave requirement on employers that is effective beginning on April 1, 2020.

Is all leave under the FMLA now paid leave?

No. The only type of family and medical leave that is paid leave is expanded family and medical leave under the Emergency Family and Medical Leave Expansion Act when such leave exceeds ten days. This includes only leave taken because the employee must care for a child whose school or place of care is closed, or child care provider is unavailable, due to COVID-19 related reasons.

 Are the paid sick leave and expanded family and medical leave requirements retroactive?

No.

How do I know whether I have “been employed for at least 30 calendar days by the employer” for purposes of expanded family and medical leave?

You are considered to have been employed by your employer for at least 30 calendar days if your employer had you on its payroll for the 30 calendar days immediately prior to the day your leave would begin. For example, if you want to take leave on April 1, 2020, you would need to have been on your employer’s payroll as of March 2, 2020.

If you have been working for a company as a temporary employee, and the company subsequently hires you on a full-time basis, you may count any days you previously worked as a temporary employee toward this 30-day eligibility period.  

Where do I post the Families First Coronavirus Response Act Notice? Since most of my workforce is teleworking, where do I electronically “post” this notice?

Each covered employer must post a notice of the Families First Coronavirus Response Act (FFCRA) requirements in a conspicuous place on its premises. An employer may satisfy this requirement by emailing or direct mailing this notice to employees, or posting this notice on an employee information internal or external website.

Click here for more FAQ on this topic.

Click here for a PDF of the poster.

Small Business Exemption

Small businesses with fewer than 50 employees will be eligible for an exemption from the leave requirements relating to school closings or child care unavailability where the requirements would jeopardize the ability of the business to continue. The exemption will be available on the basis of simple and clear criteria that make it available in circumstances involving jeopardy to the viability of an employer's business as a going concern. Labor will provide emergency guidance and rulemaking to clearly articulate this standard.

How does the Families First Coronavirus Response Act intersect with what the unemployment agency has sent out regarding paying workers who have to be off for COVID? Will it be retroactive to the 15 day enactment?

At no time will an employee be entitled to a windfall double payment of any sort. Secondly,  if the employee is being paid they may not apply for unemployment benefits. That would be fraud.

The employer should review their PTO plan and determine what it states relative to benefit eligibility for time off for other purposes. (vacation, sickness, etc.) and if they want the employee to exhaust that first they should make sure the policy states that. Employers can update their PTO policies at their discretion (unless workers are covered by a collective bargaining agreement). Receipt of PTO pay will also prohibit eligibility for UI.

When the new Emergency paid sick leave  takes effect, employees will receive that paid benefit if they qualify under the six reasons stated in the law;

  1. The employee is subject to a legal quarantine or isolation order;
  2. The employee has been advised by a health-care provider to self-quarantine;
  3. The employee is symptomatic and seeking a diagnosis;
  4. The employee is caring for a person who is subject to a legal quarantine or isolation order or who has been advised by a health-care provider to self-quarantine (as described in Reasons 1 and 2);
  5. The employee is caring for a son or daughter whose school, day care is closed or child-care provider is unavailable due to COVID-19 precautions; or
  6. “The employee is experiencing any other substantially similar condition specified by the Secretary of HHS”

 


Health-Related HR Issues

If one of our employees is quarantined, what information can we share with our employees? Who can we share it with?

If an employee is confirmed to have COVID-19, employers should inform fellow employees of their possible exposure to COVID-19 in the workplace. Employers should not, however, disclose to coworkers the identity of the quarantined employee due to ADA and HIPAA confidentiality requirements as well as local laws.

There are a number of variations of the issues raised above.  HR needs to consult with their legal counsel to ensure they are not violating any of the various laws.  With the expectation that the Coronavirus spread hasn’t peaked yet in the U.S., HR needs to be vigilant in advising managers not to do anything that would lead to liability during this time period.

Can an employer restrict travel to all locations under a CDC travel advisory?

An employer may restrict business travel. Employers should continue to consult the CDC’s website: “Coronavirus Disease 2019 Information for Travel” for up-to-date travel notices concerning risk. 


Health Insurance

Will Blue Cross Blue Shield of Michigan and Blue Care Network allow employers to extend coverage to their employees who are affected during temporary closures or are temporarily laid off or have temporary reduced hours?

Yes, Blue Cross and BCN will allow extension of coverage for all group sizes provided premiums are paid based on current payment policies. Paying the premium is all that is required; no need to submit additional paperwork for current employees. The following would apply: • The employer still considers the individual an employee and therefore eligible for coverage under the group’s plan. • The employer maintains premium payments. • The employer should notify the employee that benefits would be maintained for a specified number of months. • If the employee does not return after the specified period, the group would proceed with the normal loss of coverage/termination process.

What is the standard employer premium payment grace period and are you making any changes to that policy?

Blue Cross and BCN will continue with our current grace periods – for fully insured customers this is a 30-day grace period. We recognize, however, that COVID-19 is rapidly changing our health care ecosystem and we will continue to assess our approach.

Will Blue Cross and BCN allow employers to modify open enrollment, new hire, reinstatement policies after returning from furlough?

Yes, Blue Cross and BCN will allow and is willing to waive waiting periods. Groups can re-add employees through the usual membership processes.

Will Blue Cross and BCN re-rate experience rated insured coverage or stop loss for changes in contracts or other fluctuations in eligibility that are driven by responses to the COVID-19 pandemic?

We realize that there may be several types of unique eligibility changes that occur in the near-term in response to COVID-19. To avoid creating concerns for our group customers we will place a temporary hold on our re-rating practices related to large changes in enrollment until further notice.

For customers that are experiencing a change in membership due to COVID-19, will Blue Cross and BCN allow the employer to self-adjust their bill?

Group customers or agents should not self-adjust the bill. Membership changes will automatically be applied in the group’s next billing cycle. If there is more than a 25% change in the group’s fully insured membership, groups should work with their managing agent or Blue Cross account representative before the due date.