June 30, 2015
On June 4, 2015, Insurance Commissioner Robertson issued Bulletin 215 regarding the transitional renewal of group health plans for groups with 51-100 employees. As background, on Jan. 1, 2016, under PPACA the definition of small employer changes from 1-50 employees to 1-100 employees. According to the advisory memorandum, Indiana has adopted a transitional policy for small employers, as allowed by the CCIIO (outlined in a March 5, 2014, CCIIO bulletin which allows transition relief for non-PPACA-compliant plans with years beginning on or before Oct. 1, 2016).
The Department previously issued Bulletin 205 (addressed in the April 8, 2014 edition of Compliance Corner) which permitted these transitional policies to be renewed in the individual and small group markets. Bulletin 215 now extends a similar opportunity to large group health insurance policies for employers with 51-100 employees.
The Indiana Department of Insurance will allow insurers to determine whether to renew these non-PPACA-compliant policies as long as the determination is made on a non-discriminatory basis. Importantly for employers sponsoring such policies, a policy that has been cancelled cannot be reinstated. Further, insurers are not required to renew policies, so employers should inquire with their insurance carrier as to whether such policies will continue to be available. Finally, employers will not be able to purchase new non-PPACA-compliant policies or switch to a different insurer to replace a non-PPACA-compliant policy.
Bulletin 215 »