Important Notice about Child-Only Policies from WellPath/CoventryOne

Dear Valued Broker,

CoventryOne is committed to offering products that policyholders value while maintaining a strong financial position. One of the significant changes under the recently-enacted health reform law and subsequent federal rules is a guaranteed issue requirement that takes effect later this month for all children under 19. The new environment created by the guaranteed issue provision poses unique risks that could undermine our ability to offer value and meet our continued obligations to existing policyholders. As such, CoventryOne is discontinuing all new sales of child-only policies.

 

New Business - Important Details

•  The last signature date for CoventryOne Child-Only applications is September 20.
  
  
• Standard guidelines for requesting effective dates remain the same. The Requested Effective Date must be after, but no MORE than, sixty days past the signature date of the Application.
  
  
• Any Child-Only application received after September 20 will not be accepted for processing. Applications for Child-Only coverage received after September 20 will be returned to the applicant with a letter indicating that we no longer offer Child-Only policies.
  
  
• CoventryOne will continue to accept children under 19 years old who are dependents to a policy.
  
  
• If a dependent under age 19 applies with a parent or legal guardian, and the parent or legal guardian does not qualify or does not accept an offer for coverage, the dependent is ineligible. Please expect further information over the next few weeks regarding the new Federal Rule that will allow an open enrollment period for accepting children applying as dependents under a policy being applied for by their parent. As the U.S. Department of Health and Human Services refines their guidance on this matter, they will communicate Coventry's position on the rule. The announcement above refers strictly to children that are applying without their parent.
  
  
• Quoting and application tools will be updated shortly to reflect this change. An error message stating that the primary applicant applying for coverage must be 19 years or older will appear if someone attempts to obtain a quote or apply online for Child-Only coverage.
  

 

Existing Business - Important Details

 

• There are no changes to in-force Child-Only policies. We will continue to administer and service these policies and in accordance with our normal procedures. Plan changes including buy-ups and buy-downs will be offered. Buy-ups will be underwritten according to usual business practices.

 

• In-force plan changes that would result in any Child-Only dependent(s) (under the age of 19) remaining on a policy as the Primary Subscriber will not be offered. Consequently, it will no longer be possible for an under 19 child to remain on a policy where he/she would have previously been labeled the Primary Subscriber due to adult(s) terminating from a policy.

 

For more information, rating tools or quotes, call your TPM representative at 800-998-1999.