Non-Grandfathered Plan Extended Transition

[LOGO] THE STATE of ALASKA GOVERNOR SEAN PARNELL Department of Commerce, Community, and Economic Development DIVISION OF INSURANCE Juneau Office P.O. Box 110805 Juneau, Alaska 99811-0805 Main: 907.465.2515 Fax: 907.465.3422 TDD: 907.465.5437 # BULLETIN B 14-03 TO: ALL INSURERS AUTHORIZED TO TRANSACT HEALTH INSURANCE IN THE STATE OF ALASKA AND OTHER INTERESTED PARTIES RE: NON-GRANDFATHERED PLAN EXTENDED TRANSITION On November 21, 2013 the Alaska Division of Insurance issued Bulletin B 13-09 reminding all insurance companies, health maintenance organizations, and hospital medical service corporations issuing non-grandfathered policies or plans that, barring amendments to the Patient Protection and Affordable Care Act (PPACA) or its implementing regulations, policies and plans issued or renewed on or after January 1, 2014 must be in compliance with the PPACA requirements. Bulletin 13-09 also clarified that insurers could offer to early renew or extend existing policies or plans on or before December 31, 2013. On March 5, 2014 CMS issued an Insurance Standards Bulletin providing for an extension of the transitional period for non-grandfathered coverage in the small group and individual health insurance markets. According to this CMS bulletin, non-grandfathered health insurance coverage in the individual or small group market that is renewed for a policy year starting on or before October 1, 2016 will not be considered out of compliance with certain federal requirements if certain specific conditions are met. As also noted in the CMS bulletin, the transitional policy applies to the large employer group market for those employers with 51 to 100 employees. To the extent that insurers choose to renew non-grandfathered plans pursuant to the transition policy, this transitional policy would give Alaskans additional and possibly more affordable coverage options. Therefore, the state will allow insurers to renew non-grandfather plans as set forth in the CMS March 5, 2014 Insurance Standards Bulletin for both the individual and small group markets and, as applicable, the eligible portion of the large group market. Keep in mind that health insurance rates must be filed with the Division at least 45 days prior to the proposed effective date of the rates. Insurers that choose to take advantage of the transition plan and therefore plan to offer renewal of non-grandfathered plans must submit rates for this non-grandfathered business as required under 3 AAC 31.235. Bulletin B 14-03 supersedes Bulletin B 13-09. Dated March 28, 2014 Lori K. Wing-Heier Director