What Ever Happened To The 75% Participation Requirement?

Back in the day insurance companies required 75% participation of eligible employees to achieve an acceptable spread of risk. Now we see carriers requiring much lower participation requirements. What happened?

The following is part of an email solicitation we received today from Aetna:

“As part of our continued effort to streamline how we do business in small group 2-100, we’re excited to discuss more changes that make it easier for you to sell Aetna Funding Advantage (AFA).”

“With our new participation guidelines, your clients with 10-100 eligible employees only need to have 30 percent of total eligible employees enroll in the plan. Refer to segment definition grid in the Aetna Funding Advantage underwriting guidelines for specific state information.”

“Aetna Funding AdvantageSM plans are self-insured by the employer and administered by Aetna Life Insurance Company. Stop loss insurance coverage is offered by Aetna Life Insurance Company. If you have any questions, please contact us.”