Off Cycle Plan Change

[Guest TommyS]

We are an under 50 employee company with a plan year of Oct. 1 to Sept. 30. We tried to get our helath insurer (same one for 9 years) to alter our plan year to a calendar year to allow us to consider an HDHP plan with an HSA. Our existing FSA 3d party administator thought this would not be a problem. But our insurer would not consider one 15-month period renewal. We then renewed for one year and asked about doing a renewal or new plan on January 1. Carrier sales rep told us that because we're 2-50, they are required to renew us at annual renewal and there is a limit (statutory, regulatory, other?) on how much they can increase us at annual renewal but that cap doesn't apply to offcycle plan changes/exceptions. Because they said we have high utilization, going to Jan. 1 would be prohibitively expensive and that they might actually not care if we went elsewhere.

Is this right about required renewal and the limit/cap on 2-50 groups? Would that be federal or state (Ohio)? Or is this a bunch of hooey??

Any input or direction would be much appreciated.

Tommy