Here’s how management carve outs worked prior to health care reform.
Historically the usual criteria to have a Management Carve out are by:
Union vs. non-union,
Salary vs. non-salary
When can an EmployER and affiliated companies have a Management Carve Out?
Carve outs are acceptable as long as it’s a true classification, like Management or Salaried Workers only. Carve outs are non-guarantee issue which means health statements are always required.
However, you can do a Guaranteed Issue carve out if the group meets all 3 criteria:
- Total group size is under 50 eligible
- At least 51% of eligible employees reside in California
- Non-carve out population is offered coverage through another carrier
Email dated 8/10/2011
Health Net Explanation in their renewal guide.
FAQ’s BC/BS 9/23/2010
Please note that the “Final Rule” (2.27.2013 13416 Federal Register Vol 78) allows an Open Enrollment Period where a Small Group can enroll without meeting participation or contribution requirements.
Health Care Reform’s Effect
Related Pages on
- Common Ownership – Affliated Companies
- Pre – Health Care Reform – Management Carve Outs
- Salary Discrimination §2716
- Similarly Situated Employees
Broker ONLY Links
Summary of Underwriting Requirements