Insights

State Allows Issuers to Renew Certain Non-ACA Compliant Policies


On January 27, 2021, the Division of Insurance issued Bulletin 21-02, announcing that the division will allow insurers the option to renew non-ACA-compliant individual and small group coverage if coverage has been continuously in effect since December 31, 2013. Policies may continue to be renewed on or before October 1, 2022, provided that all such coverage comes into compliance with the specified requirements by January 1, 2023. Insurers may early renew coverage or issue coverage for periods less than one year if a policy terminates prior to December 31, 2022.

On January 19, 2021, CMS provided guidance for a transition policy extension that allows insurers the option to renew non-grandfathered non-ACA-compliant plans, as long as the state allows for such an extension. Such transition policies are not required to be in compliance with certain ACA mandates including community rating, coverage of essential health benefits, prohibition on pre-existing condition exclusions and the annual out-of-pocket maximum limit. This bulletin applies this most recent federal extension to Alaska and allows the issuer to renew these non-ACA compliant plans.

Insurers who renew non-ACA compliant policies must provide enrollees with notice concerning how their premiums may be affected by this decision.

Employers with plans regulated by the state should be aware of this development.

Bulletin 21-02 »