May 05, 2017
In compliance with the final Notice of Benefits and Payment Parameters (NBPP) for 2017, Blue Shield of California rates small groups using the group policyholder’s “principal business address.”
Per the NBPP rule, “Principal business address” means the group’s principal business address registered with the State. When the principal business address is not registered with the State, or is registered solely for purposes of service of process and is not a substantial worksite for the policyholder’s business, the principal business address is the business address within the State where the greatest number of employees works.
For April 1st 2017 effective dates and onward, Blue Shield of California’s Master Group Application was updated to request the “Business street address where most of your employees work (if different from physical address above).” This update enables the Underwriting team to identify the principal business address when a) the group’s address is not registered with the State, or b) the group’s registered address is not a substantial worksite.
The Blue Shield of California Underwriting team will notify the broker or General Agent if they determine that the principal business address that will be used for rating purposes differs from the physical address listed on the Master Group Application.
