March 21, 2017
On Mar. 6, 2017, Wisconsin Commissioner of Insurance Nickel released a bulletin related to the extension of non-PPACA-compliant small group and individual policies and plans. 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 Bulletin states that Wisconsin will allow insurers to renew policies in the individual market and the small group market according to the extended transitional policy. Insurers may use either early renewal or short policy years to implement the extension. Employers with non-PPACA-compliant plans should work with their insurer on any policy extension.