AmeriHealth NJ Deferred Payment Option for Fully Insured Groups
AmeriHealth New Jersey has announced an opportunity for eligible groups to take advantage of a deferred payment plan for their April or May premiums in response to the impact of COVID-19:
To be eligible, the group customer must be paid to date for their March 2020 premiums, if deferring the April premium payment, or paid to date for their April 2020 premiums, if deferring the May premium payment.
The deferred premium payment must be paid in full by December 1, 2020. Monthly installments will be due on respective due dates beginning June 1 through December 1, 2020 (see here: sample group customer payment deferral scenario which illustrates). If installments are not paid by the due dates, the customer will enter delinquency and be subject to termination.
Large Groups (51+ employees) must also provide an attestation from their senior financial officer or certified public accountant stating they have experienced a financial hardship caused by COVID-19.
AmeriHealth is streamlining the program submission process which MUST go through our office and cannot be sent to AmeriHealth directly. The deadline to submit is 4/20 (if deferring April’s premium) or 5/15 (if deferring May’s), no exceptions.
For employers who have applied for and/or received a Paycheck Protection Program (PPP) loan: PPP loans are forgivable if used as prescribed within eight weeks of loan origination. Forgivable PPP loan amounts include the costs associated with keeping employees on the health insurance plan during the eight-week period; as such, these employers should consider whether it is potentially a better deal to obtain a PPP loan to pay for employee health insurance premiums (a potentially forgivable expense, assuming the remaining loan amounts are used as prescribed) or whether taking the 60-day grace period/deferral, which mandates repayment, is a better fit.
As a reminder, AmeriHealth is also temporarily allowing all fully insured customers with fewer than 500 enrolled employees to make premium payments via credit card from now through July 31, 2020. Credit card payments may be used to satisfy past due premiums as well as any current amounts that are due.