Insights

On March 8, 2017, Idaho Department of Insurance Director Cameron released Bulletin No. 17-01 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 Bulletin states that Idaho will allow insurers to renew policies in the individual market and the small group market according to the extended transitional policy. Please note, however, that such carriers must continue to abide by requirements outlined in Bulletin 16-03 (meaning that all grandmothered plans will be on a calendar-year renewal schedule).Carriers are required to provide a notice at renewal which informs the individual or small employer of the option to renew the existing coverage. The notice must also inform them that some PPACA market reforms are not included in their current plans. It must be mailed without any other materials except for a cover letter, which may include the renewal premium.

Small employers that are interested in renewing their non-PPACA-compliant plan should work with their advisors and insurers. Bulletin No. 17-01 »