Manufacturers' Association of Northwest Pennsylvania
Business Magazine VOL. XXI, NO. 5, May 2008

Next Month's Feature:
2008 Annual Report

  • Home »
  • FAQs »
  • Employee Benefit Services

Employee Benefit Services

How can a company obtain health insurance through the Manufacturers' Association?

In order to obtain insurance through the Manufacturers' Association, a company must be a member of the Association and have at least two full-time employees.

How soon after membership approval can the insurance become effective?

Insurance can become effective the first day of the second month following membership approval. (e.g., December membership could result in a February 1 effective date.) These dates are dependent upon the event that the insurance carrier receives all enrollment information at least 31 days prior to the effective date.

What are the rates of premium, and how are they determined?

Regardless of which insurance carrier is chosen, premium rates are determined one of two ways, depending on the size of the company. If the company has less than or equal to 50 employees, the rates are based on certain demographic factors — namely, physical location of the company, average age of the employees and the SIC code. If the company has 51 or more employees, the premium is determined, in part, by the medical-loss ratio of the group. The amount of impact this ratio has depends on the size of the company. Rates are then determined by the carrier and can be obtained through the Manufacturers' Association or a licensed agent or broker. Rates also depend upon the plan chosen. Some plans are more costly than others.

Which insurance carriers are partnered with the Manufacturers' Association?

To date, the Manufacturers' Association offers group health insurance underwritten by the following insurance carriers: Highmark Blue Cross Blue Shield, HealthAmerica, UPMC Health Plan, and United Healthcare. Ancillary products such as life, accidental death and dismemberment, short-term disability and dental insurance are available and are underwritten by Aetna Life Insurance and Delta Dental.

Can a company be a member of the Manufacturers' Association and not participate in the insurance plan?

Yes. Even if a member company subscribes to the insurance through the Manufacturers' Association and decides to no longer participate with the insurance plan, that company's membership will remain unaffected. However, to take advantage of the insurance plans, a company must retain its membership.

What type of health insurance plans are available through the Manufacturers' Association?

The Manufacturers' Association offers a wide variety of plans for health insurance. These plans range from a very restrictive HMO-type plan to nonrestrictive indemnity plans. Click the link to see more information about plans offered by these carriers.

What is meant by more restrictive/less restrictive plans?

Those plans that require a subscriber to choose a primary care physician (PCP) and coordinate all care through that PCP are considered to be more restrictive than those that do not require that a PCP be chosen. Networks of physicians and specialists may also be restricted in a more restrictive plan.

Does participation in the insurance plan require that a company participate in all insurance programs offered?

A member company may choose to participate in one or all types of insurance plans. For instance, a member company can subscribe to health insurance alone or in conjunction with any ancillary products through Aetna (life, AD&D, short-term disability) or DeltaDental (dental). In the same respect, any Aetna or Delta Dental coverages can also be subscribed to alone (consistent with participation requirements) or in conjunction with each other. Health insurance plans can exist as a dual option (consistent with underwriting) within the confines of one carrier. Two different Highmark plans can exist as dual options with each other within one company (consistent with underwriting) however, UPMC and Highmark for example cannot coexist within one company.

How is the insurance billed?

All invoicing is done through a third-party administrator, Employee Benefit Data Services. Bills are mailed by the fourth working day of the month with payment requested by the 15th of the month prior to coverage without penalty.

For more information, contact Patty Smith at psmith@manp.org, or call 814/833-3200 or 800/815-2660.