April 05, 2016
On March 28, 2016, the Division of Insurance issued Bulletin 16-03, which provides guidance related to transitional small group policies. As background, on Feb. 29, 2016, CMS announced that states would have the option of renewing transitional small group and individual policies for policy years beginning on or before Oct. 1, 2017. The non-grandfathered policies had to be in place prior to 2014 and must end by Dec. 31, 2017. If the policy meets requirements, it is exempt from certain coverage mandates including community rating, coverage of clinical trials and essential health benefits. See the March 6, 2016 edition of Compliance Corner.
The bulletin confirms that insurers in South Dakota will have the option to continue such policies until Dec. 31, 2017.
Bulletin 16-03 »