ODS Premium Tax Summary

ODS medical premium rates will increase to include the newly passed 1 percent premium tax (Oregon House Bill 2116). The rate increase will take effect October 1, 2009, for all group, Portability and Medicare Supplement policies, and November 1, 2009, for individual commercial policies. The rate increase will not appear as a separate line item on the premium billings. In addition, community-rated groups and experience-rated groups will be treated the same.

The rate increase will affect fully insured medical premiums, including pharmacy and vision riders, as well as Portability and Medicare Supplement plans. It will not affect dental, Medicare Advantage, Medicare Part D or self-funded rates.

The premium tax rate increase applies to contracts issued in Oregon, both group and individual, as well as Oregon residents for contracts issued in Alaska.

An e-mail communication will be sent to your groups regarding this change by the end of August. A notice will also be printed on their October billing statement, which will be mailed in early September.

If you have any questions regarding the premium tax or the rate increase, please contact ODS Marketing Representative or Account Manager at 503.243.3948.

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