Late Fee Assessment to Fully Insured Groups

The new late fee will be calculated at the prime rate (as published in the Midwest edition of The Wall Street Journal) plus 2 percent of the group’s monthly premium amount due.

A recent review of payment procedures showed that the majority of groups make timely payments –– and some do not. Late payments are not consistent with group contracts and how rates are set; therefore, it leads to increased costs for all groups. Rather than increasing rates to all groups to accommodate those that pay late, Wellmark will begin to assess a late fee for only those groups that pay late. This is the most equitable way to keep premiums as low as possible for all groups and is consistent with group financial agreements.

Employer groups received a flyer on the new late fee assessment in the mail. Contact your Broker Account Manager or customer service for questions or concerns regarding this payment process change.

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