Cigna Experience Relief Credit for Guaranteed Cost Fully-Insured Clients

Posted on July 15, 2020

Cigna has advised that they will apply an experience credit to the April 2021 bill to ALL eligible, fully-insured guaranteed cost clients. The experience credit will be at least 10% of clients’ average monthly medical premium during the 2020 calendar year.

Here are details of how the credit will be applied:

• The final percentage credit applied will be determined based on Cigna’s 2020 calendar year book of business experience.
• The credit will be applied to the April 2021 bill*, for guaranteed cost clients who were effective between May 1, 2019 and April 30, 2020.
• Clients outside of NY and NJ must be active with Cigna as of April 2021 to receive the experience credit. NY and NJ clients will still receive the credit even if they are no longer active.

Note: This percentage could ultimately be adjusted upwards, contingent upon the actual assessed outcome of the impact of COVID-19 for the remainder of calendar year 2020.

*The program does not apply to Shared Returns, HMO policies, Allegiance’s guaranteed cost product, or new guaranteed cost business written after April 2020. Guaranteed cost premium credits will be available in all states where such credits are allowed and consistent with state regulatory parameters. If an otherwise eligible Policy is not active as of April 2021, the experience credit will be manually processed to generate a payment to the former client.