Fully-Insured Billing

Account Structure What Will Change? Account numbers –Customers will no longer be assigned bill to account numbers, but bill account numbers Group numbers –Represents all information about members –Associated with a single product Changes to billing procedures take place immediately upon platform migration Account Numbers Account Structure Billing Procedures Group Numbers

Payment Policies and Procedures e-Bill Portal Customers are notified by when: Invoices become available Amount due changes A payment is returned Following platform transformation, fully- insured customers will move to a new e-Bill system Restrictions in e-Bill for the initial billing period

Payment Policies and Procedures Returned Bank Items: –If a customer has a returned bank item in e-Bill, they will need to make the next payment via check to the lock box. –Customers can use the following payment options: Wire transfers Customer’s own bill payer service “e-box” Pay by check to the lock box with the invoice coupon Walk-in service e-Bill Missing Remit Coupons –Following platform transformation, if an invoice payment is received without the remit coupon, IBC will manually determine how to apply payment to the correct invoice or contact the customer.

Other Billing Changes IBC will use Mellon Bank for ACH e-Bill payment processing (transparent to the customer). After migration, customers will be notified of new lockboxes. New payment instructions will be included on new invoices with coupon remittances. Retroactivity for enrollment periods prior to migration will be applied manually to the new invoice. IBC will eliminate the ZipCheck recurring payment option for direct pay (individual) customers on January 1, 2014 for migrating business only. Non- Medicare direct pay customers will have the option of moving to e-Bill/EFT as a new payment option. Premium payments will be applied to satisfy a specific invoice; payments received will no longer be applied to the oldest outstanding balance. Consolidated billing is greatly enhanced and will be a key feature of the new billing system.

Collections Process Following platform transformation, all customers with commercial contracts will move to a manual termination and reinstatement process. –Customers will also receive a series of dunning letters prior to termination for non payment of premium.

Collections Process Customers will move to a 3-letter dunning and termination process. IBC will adhere to CMS requirements for the collections process for direct pay Medicare members. Delinquent account information will be fed to the ROAM system to inform brokers and IBC account executives based on the series (3 letters) of dunning and termination letters. –Notification in ROAM will occur at the 15- and 30- and 45-day mark. The time frames for large vs. small group will be slightly varied.

Support From IBC IBC will educate fully-insured customers about new features offered through: –Billing platforms –e-Bill –Changes to invoice format and other capabilities.