Extension of Transitional Policy through Calendar Year 2019

DAVID Y. IGE GOVERNOR DOUGLAS S. CHIN LT. GOVERNOR CATHERINE P. AWAKUNI COLÓN DIRECTOR GORDON I. ITO INSURANCE COMMISSIONER # STATE OF HAWAI'I # INSURANCE DIVISION DEPARTMENT OF COMMERCE & CONSUMER AFFAIRS P. O. BOX 3614 HONOLULU, HAWAI'I 96811-3614 335 MERCHANT STREET, ROOM 213 HONOLULU, HAWAI'I 96813 PHONE NO: (808) 586-2795 FAX NO: (808) 586-2806 cca.hawaii.gov/ini April 20, 2018 MEMORANDUM 2018-2H TO: All Health Insurance Companies, Mutual Benefit Societies, and Health Maintenance Organizations Authorized to Write Health Insurance in Hawaii FROM: Gordon I. Ito, Insurance Commissioner SUBJECT: Extension of Transitional Policy through Calendar Year 2019 The State of Hawaii elects to adopt the Centers for Medicare and Medicaid Services extension of transitional policy for non-grandfathered health insurance coverage in both the individual and small group markets.¹ This extended transitional policy covers policy years beginning on or before October 1, 2019, so long as policies end by December 31, 2019.² ## Background On November 14, 2013, the Centers for Medicare and Medicaid Services (CMS) announced federal guidelines under which insurers could offer reenrollment in health benefit plans facing cancellation as a result of the 2014 reforms under the Affordable Care Act.³ The guidelines allowed State authorities to permit health insurers with small group and individual policies that were in effect on October 1, 2013, to be renewed for a policy year starting between January 1, 2014, and October 1, 2014. Transitional or “Grand-Mothered” plans are only available to business or individuals enrolled prior to October 1, 2013. ¹ CMS “Insurance Standards Bulletin Series- INFORMATION- Extension of Transitional Policy through 2019” (April 9, 2018), available at https://www.cms.gov/CCIIO/Resources/Regulations-and-Guidance/Downloads/Extension-Transitional-Policy-Through-CY2019.pdf. ² Id. October 1, 2014. Transitional or “Grand-Mothered” plans are only available to business or individuals enrolled prior to October 1, 2013. ¹ CMS “Insurance Standards Bulletin Series- INFORMATION- Extension of Transitional Policy through 2019” (April 9, 2018), available at https://www.cms.gov/CCIIO/Resources/Regulations-and-Guidance/Downloads/Extension-Transitional-Policy-Through-CY2019.pdf. ² Id. ³ CMS “Letter to State Insurance Commissioners” (Nov.14, 2013, available at https://www.cms.gov/CCIIO/Resources/Letters/Downloads/commissioner-letter-11-14-2013.pdf. MEMORANDUM 2018-2H April 20, 2018 Page 2 of 2 On March 5, 2014, CMS granted a two-year extension for transitional plans, requiring policies to end by October 1, 2016.4 On February 29, 2016, CMS granted an extension for transitional policies beginning on or before October 1, 2017, provided that the policies ended by December 31, 2017.5 On February 23, 2017, CMS granted an extension for transitional policies beginning on or before October 1, 2018, provided that the policies end by December 31, 2018.6 CMS Extension through December 31, 2019 On April 9, 2018 CMS granted an extension for transitional policies beginning on or before October 1, 2019, provided that the policies end by December 31, 2019.7 The State of Hawaii elects to adopt the extension for both the individual and small group markets. Therefore, insurers in the individual and small group market may renew transitional policies beginning on or before October 1, 2019, so long as these policies end by December 31, 2019. Transitional Plans are only available to small business or individuals enrolled prior to October 1, 2013. If you have any question, please e-mail ihealth@dcca.hawaii.gov. 4 CMS “Insurance Standards Bulletin Series – Extension of Transitional Policy through October 1, 2016” (Mar. 5, 2014), available at https://www.cms.gov/cclio/resources/regulations-and-guidance/downloads/transition-to-compliant-policies-03-06-2015.pdf. nly available to small business or individuals enrolled prior to October 1, 2013. If you have any question, please e-mail ihealth@dcca.hawaii.gov. 4 CMS “Insurance Standards Bulletin Series – Extension of Transitional Policy through October 1, 2016” (Mar. 5, 2014), available at https://www.cms.gov/cclio/resources/regulations-and-guidance/downloads/transition-to-compliant-policies-03-06-2015.pdf. 5 CMS “Insurance Standards Bulletin Series – INFORMATION – Extension of Transitional Policy through Calendar Year 2017” (Feb. 29, 2016), available at https://www.cms.gov/CCIIO/Resources/Regulations-and-Guidance/Downloads/final-transition-bulletin-2-29-16.pdf. 6 CMS “Insurance Standards Bulletin Series – INFORMATION – Extension of Transitional Policy through Calendar Year 2018” (Feb. 23, 2017), available at https://www.cms.gov/CCIIO/Resources/Regulations-and-Guidance/Downloads/Extension-Transitional-Policy-CY2018.pdf. 7 CMS “Insurance Standards Bulletin Series- INFORMATION- Extension of Transitional Policy through 2019” (April 9, 2018), available at https://www.cms.gov/CCIIO/Resources/Regulations-and-Guidance/Downloads/Extension-Transitional-Policy-CY2018.pdf.