We recently sent this article out back in May, but in case you missed it, we wanted to send another reminder.
Press Release from Delta Delta 5/7/2020
Dear Delta Dental of Arkansas Agency Partner,
We understand that the COVID-19 pandemic outbreak is causing significant challenges and hardships for your group clients. The closure of dental practices, except for emergencies, has created a substantial reduction in claims utilization and loss ratios. Accordingly, we want to reduce our customers’ premiums and administrative fees to align more closely with their benefit costs.
In addition to the
temporary policy changes
we announced on April 9, 2020, we are now announcing a
“Pandemic Relief Credit”
for commercial group clients with dental and/or vision insurance.
- Fully insured group clients will receive a credit on their July 2020 bill for 100% of the July premium amount. This means their bill for July premiums will be $0. However, any outstanding premiums or adjustments for months prior to July will be listed on the bill.
- Self-insured group clients will receive a credit on their July 2020 bill for 100% of July’s administrative fees. This means their bill for July administrative fees will be $0.
This is not a refund. And it’s not a discount on premiums. This is a “don’t pay us at all for July!” way for Delta Dental to financially help our customers and their employees during this unprecedented time in our lives.
Why July for the “Pandemic Relief Credit?”
The main reason for picking July is to give our fully insured group clients sufficient notice to make any necessary adjustments to payroll deductions for premiums.
New Group Eligibility for the “Pandemic Relief Credit”
All active and new groups are eligible for the “Pandemic Relief Credit.” New groups with a July 1, 2020 coverage effective date will receive a credit on their July bill for 100% of the July premium amount. Any binder checks submitted will be applied to the group’s August bill.
Employers cannot keep employee dental and vision premiums
for the month of July
Delta Dental is waiving Dental and Vision Premiums for the month of July. While this is great news, what is important to know is that
employers cannot keep the insurance premiums that were payroll deducted by employees. So if you have a voluntary vision and/or dental plan, you have to tell your payroll company that all vision and/or dental payroll deductions for the month of July need to be stopped and turned back on starting Aug 1.
Please make sure to let your Payroll company or Payroll Controller know this now so that they can prepare accordingly.
Furthermore, a COBRA employee has to be treated as a regular employee. COBRA premiums will also be waived for the month of July.
If you have any questions about this, please contact your group service team below and they will be happy to help you!