Insights

Extension of Non-ACA-Compliant Plans


On April 12, 2018, the Alaska Division of Insurance published Bulletin 18-07. The bulletin relates to another one-year extension to the transitional policy of non-ACA-compliant individual and small group policies and plans.

As background, on April 9, 2018, CMS issued guidance allowing extension of so-called “grandmothered policies” (i.e., non-ACA-compliant plans that have been continued since 2013), subject to state and carrier approval. Bulletin 18-07 represents Alaska’s approval for such extension.

Bulletin 18-07 states that insurers have the option to renew non-ACA-compliant policies if coverage has been continuously in effect since Dec. 31, 2013. Those policies may continue to be renewed on or before Oct. 1, 2019, provided the policy will terminate by Dec. 31, 2019. Insurers may early renew or issue coverage for periods less than one year if a policy terminates prior to Dec. 31, 2019 and, in the case of a small group, if the employer wants coverage through the end of the calendar year.

The bulletin presents two options for insurers that elect to extend non-ACA policies. Under the first option, an insurer may permit employer-sponsored groups currently enrolled in the insurer’s non-ACA-compliant plan to continue to renew their coverage. Under the second option, the insurer may provide an additional opportunity to renew coverage in its non-ACA-compliant plan to an employer-sponsored group that’s currently enrolled in the insurer’s non-ACA-compliant plan but has indicated its intent to not renew at the end of the plan year.

Alaska small employers that are interested in renewing a non-ACA-compliant plan should work with their advisors and insurers.

Bulletin 18-07 »