Q. How will I know if a small group has embedded Life?
A. To verify if a group has embedded Life, you can check the prior plan year medical renewal, where Life coverage is represented with a volume amount and rate. In BluePrint for Agents, a division will appear with the medical group number followed by “0777” indicating a Life-specific division. For all grandmothered and grandfathered plans with embedded Life, starting Aug. 1, 2025, the Life section within the renewal will show “N/A” or “None” where it previously showed a Life volume amount (e.g., $15,000). Life rates will also not appear in the subsequent rate charts.
Q. How will I know if a large group has embedded Life that is being removed?
A. For large group renewals, the underwriter will note at the bottom of the rate exhibit that embedded Life is being removed. Also, the employer application will reflect no Life benefit. (Please note that large groups will not be permitted to evergreen renew due to this change.)
Q. Will Arkansas Blue Cross and Blue Shield or USAble Life provide a report of all embedded Life groups to an agent/agency?
A. Yes, Arkansas Blue Cross will provide this report. Please email Claire Rhodes at cwrhodes@arkbluecross.com or Lauren Curtis at lecurtis@arkbluecross.com to request the report for your agency.
Q. When is the embedded Life phase-out effective?
A. The phase-out for all grandfathered and grandmothered affected groups starts Aug. 1, 2025. This change will take effect as the groups renew, not all at once. The phase-out will conclude July 1, 2026.
Q. How will groups be notified of the changes regarding embedded Life?
A. USAble Life is required to send written notification to all groups with embedded Life, informing them of the policy termination. Groups should receive their termination notice from USAble Life 60 days in advance of their anniversary, but no later than 31 days. The termination notice will include instructions about how the group can maintain coverage on a new policy.
Q. Will the group lose their grandfathered or grandmothered medical status due to this change?
A. No. This is a mandated change for all groups as they renew and does not affect their grandmothered or grandfathered medical status with Arkansas Blue Cross.
Q. Why are USAble Life and Arkansas Blue Cross and Blue Shield discontinuing the embedded Life product?
A. The embedded Life product has become cumbersome, as many groups have transitioned away from grandfathered/grandmothered medical plans. Processing Life claims for embedded Life can be slow due to the involvement of multiple organizations. The change aims to better serve members and group administrators by transitioning groups to stand-alone Life policies solely administered by USAble Life.
Q. Can a group evergreen their medical renewal if they want the medical plan to renew as is, but the embedded Life is required to terminate?
A. Yes, a small group can still evergreen. The embedded Life will terminate regardless at renewal. A large group cannot evergreen at renewal if embedded Life is being removed; large groups must sign a new employer application.
Q. Can a group purchase a stand-alone Life policy with USAble Life?
A. Yes. Large groups should contact their Arkansas Blue Cross account manager, and they will work with you to provide a USAble Life stand-alone Life quote. For small groups (50 or fewer total employees), USAble Life is offering new shelf plans. There are two proposals:
Q. Are there excluded SIC codes for the new small group shelf-rated product?
A. For new groups without embedded Life or STD, the decline to quote (DTQ) list applies. For groups on the DTQ list that currently have embedded Life or embedded STD, USAble Life has agreed to write the group by exception during the phase-out period.
Q. Who do I contact to request a proposal for the new small group shelf-rated USAble Life plans?
A. We encourage brokers to run all quotes through their Arkansas Blue Cross representative. They will work closely with Stephen Phaup, Peter Zornik, and the USAble Life team to ensure smooth transitions for groups. For small groups, reps have an easy quote tool to provide estimated premiums for STD and LTD with minimal information.
Q. What small group shelf-rated coverages are available with USAble Life?
A. The following small group shelf-rated coverages are available:
Q. Can a group cover only employees enrolled in the medical plan under the stand-alone Life policy with USAble Life?
A. No, they cannot. Whether the group is small or large, they must cover all employees in the eligible class, typically all full-time active employees working more than 25 hours.
Q. Is there a portal to administer the stand-alone Life policy?
A. Yes, USAble Life offers a portal called AccessAble for stand-alone Life administration. BluePrint for Agents does not house stand-alone Life information. AccessAble simplifies online administration, allowing entry of employee changes, benefit elections, salary changes, and terminations. It also has a claims feature for monitoring claim status and payment details.
Q. Is there an option for dependent spouse or child Life insurance?
A. Yes, USAble Life offers Voluntary GTL with AD&D coverage for dependents to groups with five or more full-time employees. See the proposal for details and exclusions.
Q. Do members need to complete new beneficiary forms if a group purchases stand-alone GTL coverage with USAble Life?
A. Yes, each employee must complete a USAble Life beneficiary form once the group has a stand-alone policy. This applies to large and small groups. Group administrators will keep those on file and do not need to submit those to USAble Life. If there is a claim, USAble Life will contact the group administrator for the beneficiary information.
Q. Do we need to submit the beneficiary forms to USAble Life?
A. No, the employer is responsible for collecting and storing beneficiary forms. The employer must ensure all employees complete a USAble Life beneficiary form when transitioning from embedded Life to a stand-alone policy. This applies to large and small groups.
Q. Preferably, when is the employer application due to USAble Life if a group wants to purchase stand-alone GTL and AD&D coverage?
A. Employer applications and census enrollment should be submitted 15 days before the effective date. If more time is needed, please contact Stephen Phaup or Peter Zornik for assistance.
Q. How soon can I sell the new shelf-rated small group USAble Life coverages?
A. You can begin showing groups the new small group shelf-rated product starting May 1, 2025, for an Aug. 1, 2025, or later renewal/effective date.
Q. What is the agent/broker commission?
A. Under the embedded Life, broker commission was 5% or 6%, depending on the group size. The new small group shelf-rated product offers a 15% broker commission for all years to keep up with market standards. Large group stand-alone Life commissions can be customized.
Q. When quoting small group shelf-rated disability, does the broker need to provide name, date of birth, and other information within a census to receive an LTD or STD quote?
A. No. The only information needed for a shelf-rated LTD or STD quote is employee salaries and which plan option they’d like to consider. Salaries are needed to provide an estimated employer premium with the quote.
Q. What are the VGTL/VAD&D participation requirements?
A. The greater of 15% or a minimum of five employee applications. VGTL and VAD&D are bundled, which means that an election of VGTL automatically elects VAD&D for the employee.
Q. Do the plans include waiver of premium?
A. Yes. A Waiver of premium is included in GTL/AD&D/VGTL, STD, and LTD as outlined in the proposal.
Q. What does the broker need to do to write stand-alone coverage?
A. Confirm with your Arkansas Blue Cross representative that the group would like to move forward with the proposal. The Blue representative, in conjunction with USAble Life, will provide the employer with the paperwork needed to set up the new group. A census will also be needed, which is more detailed than what was required to quote.
Q. Can employer groups submit their paperwork prior to the effective date? For example, can Jan. 1, 2026, renewal date groups begin preparing and submitting their paperwork for the new coverage?
A. Yes. Group paperwork can be submitted in advance of the effective date. Enrollments will need to be updated close to the effective date so that the first month’s billing is accurate. If a group and broker choose to work on the stand-alone policies immediately after the initial broker announcements in May 2025, they are welcome to do so, but please update the census 15-30 days prior to the effective date to ensure the first month’s bill is accurate.
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