Insights

On April 20, 2020, the Department of Insurance issued Company Bulletin 2020-11 that summarizes emergency rules submitted to the Secretary of State addressing financial, coverage and prescription drug supply concerns arising from the COVID-19 pandemic. These rules are effective immediately. Highlights include:

• Insurers are required to provide 30 or 60 day extensions on premium payments in certain circumstances.
• Insurers are prohibited from interfering with an employer who wants to keep their employees eligible for coverage despite a reduction in hours or temporary layoff.
• A special enrollment period is provided due to loss of employer-sponsored group health plan coverage (and new coverage can apply retroactively to the day after their loss of coverage).
• Coverage is required for non-formulary prescriptions if there is a shortage of formulary drugs. In addition, coverage is required for a 90-day supply of covered maintenance medications (but not those prone to misuse).

Further, the DOI urges insurers to not raise premiums due to any decrease in enrollment or participation due to the public health crisis.

Employers should be aware of these developments.

Company Bulletin 2020-11 »