Insights

Transitional Policies Extended


Insurance Commissioner Ito announced in Memorandum 2018-2H that insurers will be allowed to renew noncompliant individual and small group non-grandfathered plans with policy years beginning on or before Oct. 1, 2019. This is related to the CMS announcement on April 9, 2018 of an extension to the transitional policy for non-PPACA-compliant health benefit plans. Such plans must have existed before Oct. 1, 2013 and aren’t 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. Employers with non-PPACA-compliant plans should work with their carrier and advisor in determining whether their plan can be extended.

Memorandum 2018-2H »