Insights

UT State Updates - 2015 Jan 05 No.01


On April 24, 2015, the Utah Insurance Department published Bulletin 2015-05. As background, Utah adopted a transitional policy for small employers, as allowed by the CCIIO (outlined in a March 5, 2014, CCIIO bulletin, which creates transition relief for non-PPACA-compliant plans for years beginning on or before Oct. 1, 2016). The CCIIO transitional policy allows small employers of between 51-100 employees to renew their existing policies and remain in the large group market without violating PPACA. The bulletin is meant to explain the details of Utah’s transitional policy and how it interacts with PPACA.

The bulletin clarifies Utah’s position on early renewal and transitional relief for small and large employer (those with 51-100 employees) group health plans. Specifically, insurers may allow a small employer to continue to renew or early renew a non-PPACA-compliant plan through Oct. 1, 2016. Insurers may also allow a large employer health benefit plan (for an employer with 51 to 100 employees) issued prior to Jan. 1, 2016 to renew as a transitional health benefit plan beginning on or after Jan. 1, 2016 through Oct. 1, 2016, or elect early renewal for a policy through Oct. 1, 2016, to take advantage of the transitional relief.

Insurers may choose whether to allow a renewal or early renewal for a non-PPACA-compliant health plan. Thus, Utah employers should work with their insurers in determining if continuing a non-PPACA-compliant health plan will be an option going forward.

Bulletin 2015-05 »