As part of CareConnect’s operations wind-down, effective June 1st, 2018, CareConnect will be changing their premium payment grace period from 60 days to 30 days, which is the market standard in downstate New York. The language from their official announcement is as follows:
“Effective June 1, 2018, CareConnect will be changing the grace period for all off-exchange small groups and large groups from 60 to 30 days. This will bring us in line with the market and ensures that our wind-down continues to run smoothly.
Please note that any claims incurred for dates of service within the grace period will be pended until CareConnect receives payment. These claims will be pended beginning on the first day of the effective month for which payment is due. These claims will be released immediately upon payment posting if the payment is received within the 30-day grace period. If payment is not received within 30-days, these claims will be denied.“
In addition to claims being denied per the above, CareConnect will also be terminating group coverage for non-payment of premium based on their revised 30-day grace period policy. Considering that CareConnect is winding down their operations, and will completely shut down as of 12/1/18, it is highly unlikely that CareConnect will reinstate any group which terminates for non-payment of premium moving forward.
For more information regarding alternative small group health insurance coverage for your business, contact an insurance broker.