Non-Grandfathered Plan Extended Transition

- THE STATE 01ALASKA Department of Commerce, Community, and Economic Development GOVERNOR BILL WALKER BULLETIN 16-04 DIVISION OF INSURANCE P.O. Box 110805 Juneau. AK 99811-0805 Moln: 907.465.2515 Fax: 907.465.3422 TO: ALL INSURERS AUTHORIZED TO TRANSACT SMALL GROUP HEALTH INSURANCE IN THE STATE OF ALASKA AND OTHER INTERESTED PARTIES RE: NON-GRANDFATHERED PLAN EXTENDED TRANSITION On February 29, 2016, the Centers for Medicare and Medicaid Services, Center for Consumer Information and Insurance Oversight (CCIIO) issued an Insurance Standards Bulletin further extending the transitional policy. The current policy was outlined in Bulletin B 14-03, issued by the Division of Insurance on March 28, 2014. Consistent with state requirements and the division's enforcement authority, the division will allow insurers the option to renew non-ACA-compliant 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, 2017 provided the policy will terminate by December 31, 2017. Insurers may early renew coverage or issue coverage for periods less than one year if a policy terminates prior to December 31, 2017 and the employer desires coverage to the end of the calendar year. Insurers electing to extend non-ACA-compliant plans have the following options for employersponsored group outreach and enrollment: I. An insurer may permit employer-sponsored groups currently enrolled in the insurer's non-ACA-compliant plan to continue to renew their coverage. 2. An insurer may provide an additional opportunity to renew coverage in its non-ACA compliant plan to an employer-sponsored group that is currently enrolled in the insurer's non-A CA compliant plan but has indicated its intent to nonrenew at the end of the plan year. It is important to note that in order for a transitional policy to be continued, coverage must have been in force on December 31, 2013. The guidance contained in this bulletin does not apply to "newly obtained coverage." "Newly obtained coverage" does NOT include normal enrollment changes (e.g., adding dependents or new employees) nor does it include coverage that has merely received a premium change or plan changes, such as modified copayments, coinsurance, deductibles, or provider networks, before or after December 31, 2013. It should be noted that these plan changes must conform to the uniform modification to coverage requirements under 45 CFR § 147.106. Insurers opting to renew non-ACA-compliant plans must provide disclosure to their enrollees, including notice that an enrollee's premium may be affected, either on the date of renewal or in advance of the date on which the premium change will be affected. 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 plan to offer renewal of non-grandfathered plans must submit rates for this nongrandfathered business as required under 3 AAC 31.235. This bulletin applies to all insurers offering comprehensive small group health insurance plans. Any questions concerning this bulletin should be directed to Sarah Bailey at sarah.bailey@alaska.gov or (907) 465-4608. For small group health insurance plans, Bulletin B 16-04 supersedes Bulletin B 14-03. Dated this ~ day of March, 2016