Transitional Policies Extensions to ACA in the Non-Grandfathered Individual and Small Group Market

Arkansas Insurance Department Asa Hutchinson Allen Kerr Governor Commissioner 1200 West Third Street, Little Rock, AR 72201-1904 · (501) 371-2600 · (501) 371-2618 fax · www.insurance.arkansas.gov Information (800) 282-9134 · Consumer Services (800) 852-5494 · Seniors (800) 224-6330 · Criminal Inv. (866) 660-0888 JUNE 8, 2017 BULLETIN NO.: 8-2017 TO: ALL LICENSED INSURERS, HEALTH MAINTENANCE ORGANIZATIONS, FRATERNAL BENEFIT SOCIETIES, FARMERS’ MUTUAL AID ASSOCIATIONS OR COMPANIES, HOSPITAL MEDICAL SERVICE CORPORATIONS, NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS, PRODUCER AND COMPANY TRADE ASSOCIATIONS AND OTHER INTERESTED PARTIES. FROM: ARKANSAS INSURANCE DEPARTMENT SUBJECT: TRANSITIONAL POLICIES EXTENSIONS TO ACA IN THE NON- GRANDFATHERED INDIVIDUAL AND SMALL GROUP MARKET This Bulletin replaces and supersedes AID Bulletin # 7-2016, “Transitional Policies Extensions to ACA in the Non-Grandfathered Individual and Small Group Market.” The present Bulletin is in response to a recent February 23, 2017 guidance from the Center for Consumer Information and Insurance Oversight (“CCIIO”) entitled, “Insurance Standards Bulletin Series -- INFORMATION -- Extension of Transitional Policy through Calendar Year 2018.” The guidance pertains to transitional policies or small group and individual policies that were issued between March 23, 2010 and December 31, 2013. The February 23, 2017 guidance offers to States an additional extension of time for non-grandfathered individual and small group “transitional policies” to comply with all PHS Act reforms including those related to single risk pools until December 31, 2018. In AID Bulletin # 7-2016, AID offered to issuers of transitional policies, in both the individual and small group markets, an extension to comply with all ACA reforms until the end of the 2018. AID adopts the latest extension in the February 23, 2017 guidance in both the individual and small group markets which permits transitional policy issuers to delay compliance with all PHS Act or ACA reforms until December 31, 2018. Policies renewed under this transitional policy must not extend past December 31, 2018. Transitional policy issuers in both the individual and small group markets are however permitted, but are not required, to transition their policies into the required ACA reforms or mandates within a shorter period of time in their discretion. For any questions regarding this Bulletin, please contact Booth Rand in the Legal Division of the Arkansas Insurance Department at 501-371-2820. June 8, 2017 ALLEN KERR DATE INSURANCE COMMISSIONER STATE OF ARKANSAS