Insights

Extended Relief for Non-ACA-Compliant Small Group and Individual Policies and Plans


On February 25, 2020, Insurance Commissioner Ommen released Bulletin 20-01, extending the ability of health insurance carriers in the individual and small group market to continue transitional health insurance plans through calendar year 2021.

As background, on January 31, 2020, CMS provided guidance for a transition policy extension that allows insurers the option to renew non-grandfathered non-ACA-compliant plans, as long as the state allows for such an extension. Such transition policies are not required to be in compliance with certain ACA mandates including community rating, coverage of essential health benefits, prohibition on pre-existing condition exclusions and the annual out-of-pocket maximum limit. This bulletin applies this most recent federal extension to Iowa and allows the issuer to renew these non-ACA-compliant plans.

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

Bulletin 20-01 »