UniCare Life & Health Insurance Company (UniCare) has made decision to terminate its group and individual health insurance business locally. Following a transition period, UniCare will no longer provide health insurance in Indiana.
UniCare is pleased to collaborate with Anthem Insurance Companies, Inc., (Anthem), which will offer replacement coverage, on a guaranteed issue basis with no requirement for medical questions, to UniCare’s existing employer groups and to individual policyholders living in the state. The group proposals will of course be contingent upon there being no material change in the group census, use of the correct SIC factor, and compliance with eligibility, participation, and contribution requirements.
UniCare will send 180-day advance notice termination letters to Individual policyholders and 365-day advance notice termination letters to Small Group policyholders in late April. Soon thereafter, Anthem will contact you regarding offers for your small group clients and send offer letters to Individual policyholders. Your clients will have until June 30, 2010, to accept Anthem’s offer in writing.
For UniCare customers who elect to accept Anthem’s offer of replacement coverage, the coverage under the UniCare plan(s) will terminate on June 30, 2010, and the coverage under the Anthem plan(s) will begin on July 1, 2010. Although the Anthem benefits and premium will not be identical to those of the UniCare health insurance policy being terminated, Anthem will undertake to offer comparable products, which for Individual business, will be at a premium differential of no more than 12% for the first 12 months. This maximum premium differential does not include any premium increase due to changes in age and/or address. After the expiration of the initial 12 months, the premium for these Individual policies will be based on the policies’ applicable rates. There will be no break in coverage and no preexisting condition waiting periods for UniCare customers who elect to transition to Anthem. Additionally, if the offer is accepted, Anthem will provide credit for the 2010 UniCare accumulated deductibles.
For UniCare customers who choose not to move their health insurance coverage to Anthem, UniCare will terminate and discontinue coverage at 12:01 a.m. on November 1, 2010, for Individual coverage and at 12:01 a.m. on May 1, 2011, for small group coverage. If those customers have UniCare dental, life or disability coverage, it will not be terminated and will continue in accordance with the terms of those plans.