Independence Blue Cross is returning nearly $120 million in premiums to its fully insured group employers.
The health insurance company is offering employers a one-time credit to their September invoices, totaling $35 million and another $84 million in rebates, citing effective management of medical costs. It also is extending credit card payment options from some employers through Sept. 30.
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Health insurers reportedly have reaped large profits during the COVID-19 pandemic due to a decline in medical claims. Elective procedures and routine health services were delayed or canceled as health systems prepared for a rush of coronavirus patients and fears kept people away from health settings.
Health care claims have begun returning to more typical levels, Independence officials said.
"We recognize the mounting pressures many are facing due to the ongoing impacts of the COVID-19 pandemic," Independence CEO Daniel J. Hilferty said. "By providing premium credits, issuing rebates and providing payment flexibility, Independence is hoping to reduce some of the financial burdens our clients are experiencing."
The medical premium credits being issued by Independence will be calculated using member enrollment figures as of July 1. The dental premium credits are being issued to fully insured, small group clients with Blue-branded, stand-alone dental coverage and fully insured large group United Concordia Dental-branded clients.
The extension of the credit card payment option is being offered to fully insured employers with up to 500 enrolled employees. The option was rolled out in April in conjunction with IBX's deferred payment plan. It allowed customers an extended period to pay their April and May invoices without interest or penalties.