Insurer Premium Rebates/Reductions = MLRRs?

Some health insurance carriers are reducing premiums or providing rebates due to lower utilization of medical services so the issue arises whether the employer has to "share" the savings with employees.

My view is that these are essentially an advance payments of Medical Loss Ratio Rebates the insurers would normally be sending later in the year and therefore need to be "shared" with employees as we do with MLRRs.

Anybody taking a contrary position?

Thanks

Although the then motivating issue was medical-loss-ratio distributions, EBSA’s Technical Release No. 2011-04 can apply to any distribution from a health insurer, “including refunds, dividends, demutualization payments, rebates, and excess surplus distributions.”

https://www.dol.gov/sites/dolgov/files/EBSA/employers-and-advisers/guidance/technical-releases/11-04.pdf

https://www.dol.gov/agencies/ebsa/employers-and-advisers/guidance/technical-releases/11-04

For the portion (if any) of a distribution that is a health plan’s assets (rather than an employer’s assets), a fiduciary might consider the alternatives described in the subregulatory guidance.

I do not believe that a premium reduction would be subject to the MLLR.  In such a scenario, there is not monies returned to group.  I am unfamiliar with rebates for fully insured groups that are not classified as MLRR.  Could these rebates be for level-funded plans?  If so, there are some rules around those refund of surplus claim dollars.

The attached may help clear up your questions, Carrier Premium Credits from MBWL, which NAHU uses and we do via Q4i

Client-Alert-Carrier-Premium-Credits-and-ERISA-Fiduciary-Obligations- KEYSTONE Employee Benefits 5.18.2020.docx