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Loyalty Credit: Frequently Asked Questions

It’s ACEC Life/Health Trust’s mission to support both the physical and financial health of your firm. So, we’re grateful to be able to credit a percentage of your premium back to you to help during this difficult time.

Q: Are all firms in ACEC Life/Health Trust receiving the Loyalty Credit?
A: Yes, all firms active in ACEC Life/Health Trust as of August 1, 2020 will receive the Loyalty Credit.

Q: What if my firm is new to the Trust?
A:
We’re extending this Loyalty Credit to our newest members in the form of a percentage discount. Any firm that joins ACEC Life/Health Trust on or before Aug. 1 will receive 20% off their first month’s premium.

Q: How much will my firm’s Loyalty Credit be?
A: The amount received by each firm is a percentage of that policyholder’s average monthly insurance premium owed for the first quarter of 2020. To find out your firm’s loyalty credit amount, you can send an email to [email protected]. New firms who have just joined (on or before Aug. 1) will receive 20% off their first month’s premium.

Q: If my firm pays our insurance premium in advance, how will we receive the Loyalty Credit?
A: Firms who pay their insurance premium in advance can apply their credit on a subsequent month’s invoice.

Q: Can my firm receive a check instead of a credit?
A: No. Our objective is to provide the Loyalty Credit in the most administratively efficient manner. Application as an invoice credit to August premiums satisfied this objective.

Q: How will my firm be affected by the UnitedHealthcare announcement of the $1.5 billion of support in response to COVID-19?
A:
UnitedHealthcare’s (UHC) announcement included a commitment to provide a credit ranging from 5% to 20%, applied to fully insured premium billings received in June. Because of our Minimum Premium Agreement directly with UHC, Life/Health Trust firms will not receive a credit from UnitedHealthcare.

Q: Does the Loyalty Credit increase the likelihood ACEC Life/Health Trust rates will be increased in the near future?
A: No. Future rates are based on expected future costs. The Loyalty Credit will have no impact on future rates.

Q: Do we have to renew our policy to obtain the credit?
A: No. All firms active in a Trust Medical Plan on August 1, 2020 will receive the Loyalty Credit. Future renewals will not be impacted by this credit.

Q: My employees make shared contributions. How will they receive benefits from the Loyalty Credit?
A: The Loyalty Credit is not based on your current policy or internal employee contributions. It is driven by our Mission and based, in amount, on the length of time your firm has been with the Trust. Internal administration of the credit is at the firm’s discretion.

Q: If shelter-in-place continues for an extended period of time, should we expect additional Loyalty Credits?
A: Additional credits are not expected at this time, but we’ll continue to analyze the need and possibility.

Q: Does the loyalty credit affect my broker’s commission?
A: Yes, most likely. The majority of brokers’ commissions are paid based on a predetermined percentage of collected premiums. The Loyalty Credit reduces collected premiums therefore broker commissions paid on a percentage of collected premiums will be reduced accordingly. Commission or consulting fees paid directly from the firm to the broker/consultant will not be affected by the Loyalty Credit.

Q: Is the Loyalty Credit taxable?
A: Please consult your tax advisor. We view the Loyalty Credit as a reduction in your medical benefit expense.

Q: Does the Loyalty Credit apply equally to Select Plan members?
A: Yes. Select Plan firm’s credits were calculated in the same manner as Trust member firms on a UHC policy.

Q: If we have questions regarding our August invoice, whom do we call?
A: For questions on invoicing, firms can reach out to the following:
• United Healthcare Billing: 1-888-842-4571
• AETNA/Meritain Billing: 1-800-828-6922

Download Announcement Flyer

Hear details about the Loyalty Credit from our president, Pat Feyen, on the Engineering Influence podcast.

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