May 05, 2015
On March 24, 2015, the Nebraska Insurance Department issued a notice which explains how the transitional policy rules apply to employer groups with 51 to 100 employees. As a reminder, such groups are currently treated as large groups and are experience rated. Effective Jan. 1, 2016, the definition of small group is expanded to employers with up to 100 employees, meaning that groups with 51 to 100 employees would be changed to a small group policy with modified community rating.
The bulletin provides that a carrier may renew a large group policy for employers with 51 to 100 employees for plan years starting before Oct. 1, 2016. Thus, a group with 51 to 100 employees may be able, at the discretion of the carrier, to continue its large group policy and delay the small group rating for plan years starting between Jan. 1, 2016 and Sept. 30, 2016.