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New Member-Level Pricing On Your Insurance Statement

November 12, 2013

Companies who have fewer than 50 FTE will see a change in the pricing methodology for the employees enrolled in their company sponsored health plan.

The first invoice following your 2014 plan and premium renewal will show a specific rate for each covered employee based on his/her age and, if covered, the ages of their spouse and dependents. While this new billing layout is news by itself, it is the downstream impact of which we want you to be aware.

Think about how you’ve structured your company’s contribution to your employee’s health insurance plan. At member level pricing, each employee’s premium will be different. It is common for a small business to pay a percentage of premium for their employees, for example, 75% of the single rate and 50% of the family rate. With member level pricing, combined with a percentage contribution, each enrolled employee will receive a different amount from you as an employer contribution to their premium.

Whether this change fits with your employee benefit philosophy is a company-by-company decision. We urge you to consider the implications of varying premium contributions based on the age of the employee and their dependents.

If you’re enrolled in an SBAM-sponsored health plan through Blue Cross Blue Shield of Michigan or Blue Care Network and have any questions about the new format of your company’s insurance invoice, please contact your customer service representatives at 877-949-7226 /

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