Independence Blue Cross Deferred Payment Plan Option

Independence Blue Cross has announced they will allow fully insured customers with fewer than 500 enrolled employees who are experiencing a financial hardship related to COVID-19 to defer either their April or May premiums with no interest and no penalty.

To qualify for a deferred payment plan, customers must be paid in full through March to defer the April premium payment, and paid in full through April to defer the May premium payment. The deferred premium will need to be paid over three monthly installments that will be paid with the August, September, and October payments.

See below for a sample of how the deferral will work:

ABC Company’s monthly premium = $1500 and they defer payment for April:

Coverage Month Invoice Amount Amount
Deferred balance
Apr $1500 $1500 Apr 1 $0 $1500
May $3000 $1500 May 1 $1500 $1500
Jun $3000 $1500 Jun 1 $1500 $1500
Jul $3000 $1500 Jul 1 $1500 $1500
Aug $3000 $2000 Aug 1 $2000 $1000
Sept $2500 $2000 Sept 1 $2000 $500
Oct $2000 $2000 Oct 1 $2000 $0
Nov $1500 $1500 Nov 1 $1500 $0
* The standard 30‑day grace period still applies.

Groups who wish to participate must complete/sign the Deferred Payment Plan Agreement and return it to our offices via fax: 866-625-6856, email or secure upload by 4/17 (if deferring April) or by 5/15 (if deferring May), no exceptions. There is no option to remit the agreement to Independence directly.

For employers who have applied for or already 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 deferral, which mandates repayment, is a better fit.

Independence is also temporarily accepting credit cards for premium payments 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.