SBC Contract - Anthem Health Care Reform Portal

Q. Does the health care reform law have penalties for not sending an SBC on time?A. Yes, if an employer doesn’t send the SBC to eligible employees on time, fines may be assessed. There is a fineof up to $1,000 for each person affected by a carrier or employer that willfully (intentionally) fails to send anSBC.Also, health care reform includes a fine of $100 per day, per affected person until an employer complies (whichdoes not require willful conduct). So, for example, if a group with 500 employees is out of compliance for 30days, the fine could add up to $2 million.For 2013, FAQs released by the US Department of Labor indicates monetary penalties may not be applied ifcarriers and groups are making their best effort to be compliant.Q. Are you sending the contract addendum to all of the groups in an association or only the association’smain office?A. We are sending the contract addendum only to an association’s main office. For example, while a state barassociation is made up of many law firms, we would only send the contract addendum to the state barassociation and the amendment applies to all participant organizations in the association. If a groupparticipating under an association’s plan has a renewal prior to the association’s open enrollment period, theyshould contact their broker or sales representative for an SBC.This content is provided solely for informational purposes. It is not intended as and does not constitute legal advice. The information contained herein should notbe relied upon or used as a substitute for consultation with legal, accounting, tax and/or other professional advisers.Anthem Blue Cross is the trade name of Blue Cross of California. Anthem Blue Cross and Anthem Blue Cross Life and Health Insurance Company are independent licensees of the Blue Cross Association.® ANTHEM is a registered trademark of Anthem Insurance Companies, Inc. The Blue Cross name and symbol are registered marks of the Blue Cros s Association.