Extension of Non-PPACA-compliant Small Group and Individual Policies and Plans

On April 21, 2017, South Carolina Director of Insurance Farmer issued Bulletin Number 2017-02 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 Department of Insurance previously announced – initially in Bulletin Number 2013-12 – that insurers in South Carolina could renew non-PPACA-compliant plans, as long as certain conditions are met. This Bulletin indicates that South Carolina will continue to allow insurers to renew non-grandfathered plans according to the extended transitional relief, which stipulates that such policies do not extend past Dec. 31, 2018.

South Carolina small employers that are interested in renewing a non-PPACA-compliant plan should work with their advisors and insurers.

Bulletin Number 2017-02 »