Anthem’s Chambercare Health Alliance

Anthem has developed a new Group Health Insurance plan for Indiana small group employers.  This is in direct response to the unintended consequences of the Affordable Care Act (ACA).  

Under the ACA, Indiana small group health insurance rates have doubled, and Anthem has been one of the last large to bring a solution to market. The solution they choose is called a Multiple Employer Welfare Arrangement (MEWA). 

A MEWA allows multiple employers to join for the sole purpose of obtaining health insurance at a more competitive cost. Anthem’s MEWA will offer a Group Health Insurance plan that is self-funded. This allows the plan to operate outside of all the rules and regulations of the ACA. This Chamber care Health Alliance will go back to underwriting for Indiana small group employers. Lower risk groups could see a 40%-50% reduction in health insurance premium vs. the ACA small group market.

MEWA’s are not a new concept and have a lot of history. MEWA’s have been useful tools for companies to reduce their health care costs. They have also gone insolvent due to mismanagement and are prone to adverse risk assessment.

The Indiana Department of Insurance overseas MEWA and has a specific requirement that must be met to prevent insolvency. A board or a trust governs the MEWA itself. Thus, the members of the MEWA are eligible to become board members.

Underwriting is where the ongoing medical history, age, gender, company location, SIC code, and benefit design will determine the rates.  These rating methodologies will deliver significant savings to healthy young groups. The savings could last for years if the Chamber Care keeps a relatively healthy block of business. For a company with less than 50 employees should look at the ChamberCare Health Alliance and Anthem for group health insurance.   

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