Oct 21, 2019
Blue Shield of California is clearing obstacles for start-ups and spin-offs. In lieu of payroll documents, they will accept simple attestation forms and W-4 forms for these groups. Other standard documentation is still required.
Blue Shield Small Business Underwriting will waive the DE 9C requirement for groups with five or more enrolling employees when submitted with the completed and signed "Eligibility/Participation Attestation" and the most recent group medical bill.
Payroll will be required for eligible employees who are not listed on the group medical bill and a W-4 may be required for new hires.
Start-up groups, groups with both union and non-union employees, and groups terminating a PEO arrangement are not eligible to have the DE 9C requirement waived.
Blue Shield Underwriting reserves the right to request the wage and tax information (DE 9C, payroll) whenever necessary to determine eligibility.
Small groups may continue to take advantage of their relaxed participation guidelines through the end of 2020, requiring only 25% employee participation with a minimum of five enrolled employees for medical plans. Relaxed participation requirements include vision and dental plans as well when purchased with a medical plan. You can share this information with your clients using Blue Shield’s Relaxed Participation Flier. They’re also continuing to encourage Trio sales by waiving minimum participation requirements for groups selecting Trio plans only, eliminating a barrier for your smallest of small groups.
They are eliminating part of their employer contribution rule, making it easier for you and your clients to work with Blue Shield. Previously, groups had to choose either a percentage or a dollar amount but could not mix them. Groups can now contribute a percentage for an employee and a dollar amount for dependents, or vice versa.
Please contact your dedicated LISI Regional Sales Manager to see where Blue Shield sits in your market.
