MEMORANDUM

The Federal Health Insurance Profitability and Accountability Act (HIPPA) took effect July 1, 1997. The new Federal law spells out several guidelines that have to be followed by all insurance carriers.

Effective immediately, Anthem Blue Cross and Blue Shield will be enforcing the 60-day probationary period (Federal law requires only 30 days)—for each group based upon the current information that is available. If an employee applies within this probationary period, they are eligible for coverage.

If an employee chooses not to take the coverage and is applying outside the probationary period without a qualifying event then their coverage will be denied. In this case the employee would have to wait until our normal reopening period of May and June before again applying for health care coverage.

So as to make this transition, and to comply with the new law, it is important that all groups (Audubon has two groups) have an accurate probationary period listed with Anthem Blue Cross. It is also important that every application indicate the full-time date of hire. No longer will we be able to write on the application the effective date or to make changes without having a qualifying event.

The agent will be sending to each group administrator a form that indicates current probationary periods. Any changes must be sent to the agent with an authorized signature.

We must provide assistance in this matter of processing new employee applications efficiently, and on a timely basis. Based on an August 7, 1997 memorandum from Phil Brown, Agent for the Kentucky Association for Community Action BC/BS groups.