Commonwealth of Massachusetts Executive Office of Health and Human Services Office of Medicaid 600 Washington Street Boston, MA 02111 www.mass.gov/masshealth Eligibility Operations Memo 06-04 April 1, 2006 TO: MassHealth Eligibility Operations Staff FROM: Russ Kulp, Director, MassHealth Operations RE: Medex Premium Rate Increase Introduction Blue Cross and Blue Shield of Massachusetts has received approval from the Division of Insurance on the following premium rates for all of its nongroup Medex plans: Medex Gold, Medex Silver, Medex Standard, Medex Basic, Medex Bronze, Medex Core, and Medex Core Plus, effective March 15, 2006. Rate Changes and PACES Codes The Medex plans, PACES codes, old and new quarterly rates, and new monthly premiums appear in the chart below. The new monthly premium is the amount allowed as a patient-paid amount (PPA) deduction after other deductions that get priority under our regulations at 130 CMR 520.026. Fees for special billing arrangements that cause a premium to exceed these amounts are not allowable PPA deductions. Important: Correct usage of PACES codes will prevent values greater than the maximum premium amount from being entered. Workers can enter an amount that is less than the current maximum premium amount to calculate a retroactive PPA. Medex Plan PACES Code Old Quarterly New Quarterly New Monthly Rate Rate Premium Gold 3 $1,556.88 $1,788.84 $596.28 Silver 8 $1,279.26 $1,398.27 $466.09 Standard 4 $1,116.87 $1,259.43 $419.81 Basic 1 $820.86 $929.31 $309.77 Bronze 2 $414.30 $445.56 $148.52 Core 7 $232.08 $242.43 $80.81 Core Plus 6 $487.14 $474.18 $158.06 (continued on next page) Eligibility Operations Memo 06-04 April 1, 2006 Page 2 Rate Changes and PACES Codes (cont.) Note: The premium amount for Medex Core Plus was decreased. Medex Basic, Gold, Silver, and Standard Plans are closed to new members. System Changes Community MassHealth members with Medex coding were updated with the new premium amounts for both MA21 and the PACES systems. MA21 recalculated members who have an active Medex policy. Members with an active Medex policy who have a deductible received a deductible change notice. Long-term-care MassHealth members with Medex coding were also updated with the new premium amounts by the system. MassHealth recalculated their PPAs in March for March 2006. PPA Notices During the month of April, MassHealth will mail system-generated notices containing information about the new PPAs to affected long- term-care members, conservators, and nursing facilities. Reports The system will issue the following two reports about the Medex premium rate increase. -The first report will list updated long-term-care members with their old and new Medex premiums and old and new PPAs. -The second report will be an update-exception report that identifies members with Medex premiums on file that do not correspond to the Medex plan for which the member is coded. Questions If you have any questions about this memo, please have your MassHealth Enrollment Center designee contact the Policy Hotline.