April 07, 2015
On March 27, 2015, the Arizona Department of Insurance (DOI) published a bulletin titled "Determination for 2016 Transition to Affordable Care Act-Compliant Policies." As background, in 2013 and again in 2014, the federal government announced a policy that permitted insurers to continue to renew non-PPACA-compliant policies in the small group market. On May 8, 2014, the Arizona DOI determined that it would allow insurers to renew such policies through policy years beginning on or before Oct. 1, 2015. According to the new bulletin, the DOI is allowing renewals in the small group market through Oct. 1, 2016. Further, the extension applies to policies sold to large businesses of 51-100 employees currently in the large group market but that, for policy years beginning on or after Jan. 1, 2016, will be redefined as small businesses purchasing insurance in the small group market. The bulletin also clarifies that while insurers are not required to extend non-PPACA-policies, they now have the option to do so through Oct. 1, 2016.
The bulletin is directed toward insurers, but Arizona employers should be aware of the bulletin, particularly if they are sponsoring a plan that is considered non-PPACA-compliant. Those employers should work with the insurer to determine if the non-PPACA-compliant plan will be extended.