Association medical plans in Vermont have become very popular in recent years because their rates tend to be more competitive than community-rated (non-association) plans. These medical plans are offered by two of the major carriers operating in the state and are available to employer groups with less than 51 eligible employees, the so-called "small group" arena. In order to purchase an association-sponsored plan, the company or non-profit organization must join the association, which usually charges annual dues. Non-profits often receive a discount on their annual membership fee. There is at least one Vermont association, however, that does not charge any annual membership fee.

BDS participates with all of the broker-recognized associations offered in Vermont by the various carriers serving the state. Contact BDS to see if we can assist you in locating a more competitive health insurance program through a Vermont association.

To meet the diverse needs of your Vermont work force, you may want to consider offering a choice of two plans to your employees. The "dual option", as it is frequently called, is permitted by most carriers to businesses with as few as five employees. Another advantage of an association plan is the more frequent open enrollment periods during the year to permit employees to sign up for coverage if not electing to be covered when he/she first became eligible.

When joining a Vermont association health plan, the newly-enrolled employer group's anniversary for the purpose of rate changes must coincide with that of the association. Thus, for an association having a January 1 renewal date, an employer group joining in May would see their premiums locked in for the remainder of the calendar year and then adjusted for the new year and held for the next 12-month period.

Again, the lead-time for a small employer (under 51 employees) to begin examining their rate renewal and consider all its options is at least a month, and preferably a month and a half, in advance of your anniversary date. Since a plan sponsor ordinarily does not sign a contract requiring it to stay with the same Vermont carrier for a certain length of time, an employer can switch carriers on the first of any month. Therefore the paperwork must be submitted a week or two prior to the effective date; during certain times of the year when it is particularly busy, carriers like to have the better part of a month to set up a new health plan.

On the other hand, one carrier discourages movement from one association to another. In order to switch associations offered within the same Vermont carrier's family of health plans, a company is required to give written notice no less three months in advance of the anniversary date of the association to which it intends to move.

BDS can assist you in making a smooth transition to a different association, or to move to a completely new carrier.