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PacAdvantage will not offer access to health coverage after 12/31/06

In August, 2006, PacAdvantage announced it will no longer provide access to health insurance offerings.  The withdrawal of participating health plans has left PacAdvantage unable to continue offering competitive healthcare coverage choices for California’s small business employees. 

Blue Shield of California, a long-term PacAdvantage plan, notified us it can no longer participate after December 31, 2006, due to its financial losses in the program.  Despite concerted good-faith efforts among all parties, we could not reach a financially viable arrangement that would allow for continued participation of Blue Shield of California, Health Net of California and Kaiser Permanente. A core premise behind PacAdvantage is health plan “choice” for participating small employers. Without that choice, PacAdvantage no longer can offer a suitable, competitive option for our employer groups

What This Means For Your Groups Receiving Coverage Through PacAdvantage

  PacAdvantage will no longer provide access to coverage after 12/31/06:

• All current PacAdvantage groups with renewal dates up to and including November 1, 2006 effective dates will be able to renew their coverage. However, these groups will have coverage terminating on December 31, 2006.
• December renewals will have a coverage termination date of November 30, 2006

• Employers who want to continue offering health benefits to employees need to find other carrier coverage.
• IMPORTANT - Due to PacAdvantage’s closure, we have changed our termination notification deadline for the month of December:  All group termination notices requesting an effective termination date of 12/1/06 must be received (or post-marked) no later than 12/15/06.  

• PacAdvantage employer groups may continue to receive invoices after January 1, 2007 as part of the account reconciliation process.  It is important these invoices, if received, are paid.  Failure to pay these amounts can result in a coverage termination date which will be earlier than December 31, 2006.

 Current groups receiving coverage through PacAdvantage will retain their coverage according to the following schedule:

 Key Group Coverage Termination Information

Note: December renewals have an earlier termination date of 11-30-2006

Important news for groups with vision and chiropractic / acupuncture coverage

For additional information, please refer to the following documents:

Press Release

Letter to all Employees with coverage through PacAdvantage

Letter to all Employees with coverage through PacAdvantage (Spanish Version)

Letter to all Employers with coverage through PacAdvantage

Copy of letter sent to all active PacAdvantage brokers

Brokers - View an online census of your PacAdvantage groups

SacAdvantage - Click here for information about SacAdvantage