Have questions about refunds from BCBSNC? We have the answers.


What You Need to Know

How does health care reform lead to a refund?

The new rating and grandfathering rules in the Patient Protection and Affordable Care Act (health care reform) create a one-time circumstance enabling these refunds. The funds come from active life reserves, which are portions of the premium set aside in the early years of a policy to pay future claims and keep rates stable as customers' medical expenses rise during the life of the policy.

However, policies purchased or substantially modified after March 23, 2010, will end in 2014 under the new health care reform law, which is when the new products under health reform will be introduced. Therefore, the reserves held for these products will cover a much shorter period of time, allowing for these funds to be released.

Will I get a refund?

Policyholders who had individual Blue Advantage or individual Blue Options HSA policies active on March 23, 2010, will receive refunds (the date that health care reform became law) - even those who are no longer active policyholders or customers of BCBSNC. The refund applies to eligible policyholders regardless of whether they made changes to their policy after March 23, 2010.

Members with policies through an employer are not eligible for this refund. State Health Plan policies and other products are not eligible for this refund.

How will I receive my refund?

BCBSNC is mailing refunds checks to the billing address of each eligible policyholder.

If I am eligible for the refund, when will I receive it?

BCBSNC plans to mail the checks between November 29 and December 10, 2010. Due to the high volume of mail during the holiday season, please allow until December 20 for the check to arrive in your mailbox. If you have not received the check by December 20, please call us at 1-877-784-2375.

What should I do if I am eligible and do not receive a refund?

If you have not received a check by December 20, please call us at 1-877-784-2375. If you have moved to a new address since March 23, 2010, please notify us of your new address by calling the number on the back of your card or by logging in to Blue Connect.

If you have not provided your new address to BCBSNC but have requested the post office to forward your mail, please allow eight to 10 more days for the forwarded mail to reach your new address.

Why can't BCBSNC apply my refund amount to my next month's premium instead of sending a check?

In order to distribute these refunds to all eligible customers in a timely and consistent manner, all refunds will be distributed in the form of a check.

Are State Health Plan, FEP or group members getting a similar refund?

No, this one-time refund only applies to individual Blue Advantage or individual Blue Options HSA policyholders as of March 23, 2010. The active life reserves that are being released for this refund apply only to the individual Blue Advantage and individual Blue Options HSA policies.

I had a Blue Advantage policy prior to this year. Why won't I be getting a refund?

BCBSNC is only returning funds to individual Blue Advantage or individual Blue Options HSA policyholders who had an active policy on March 23, 2010 - the day health care reform became law.

Will the refund have any tax implications on my 2010 taxes?

This amount is a refund and not a form of income. This amount should not be taxable. However, the refund does reduce the total amount spent on health care, which could impact the amount of your deductions regarding medical expenses. We recommend you to consult with your tax advisor.

Will every member within my policy receive the refund?

Each refund amount is calculated based on the total premium amount for your plan that was in effect on March 23, 2010. The refund check will be made out to the policyholder and applies to all members within the policy.

Who is the policyholder?

The policyholder is generally the person to whom the monthly premium bill is addressed.