Insights

Extension of Renewal for Non-PPACA-Compliant Plans


On April 5, 2017, Commissioner of Securities and Insurance Rosendale issued an Advisory Memorandum outlining the Commissioner’s office’s position on renewal of non-PPACA-compliant plans in Montana. As background, on Feb. 23, 2017, the federal government announced an additional transition policy that allows insurers (if allowed by the state) to renew non-grandfathered non-PPACA-compliant plans (this transitional relief has been extended twice before). Such policies are not required to be in compliance with certain PPACA mandates including community rating, coverage of essential health benefits, prohibition on pre-existing condition exclusions and the annual out-of-pocket maximum limit.

The memorandum states that Montana will allow insurers to renew policies in the individual market and the small group market according to the extended transitional policy. Employers with non-PPACA-compliant plans should work with their carrier in determining whether their plan can be extended.

Advisory Memorandum »