Hawaii Commissioner's Memorandum 2020-10H

STATE OF HAWAII OFFICE OF THE DIRECTOR DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS 335 MERCHANT STREET, ROOM 310 P.O. BOX 541 HONOLULU, HAWAII 96809 Phone Number: 586-2850 Fax Number: 586-2856 cca.hawaii.gov August 14, 2020 MEMORANDUM 2020-10H To: All Health Insurance Companies, Mutual Benefit Societies, and Health Maintenance Organizations Authorized to Write Health Insurance in Hawaii From: Colin M. Hayashida, Insurance Commissioner Subject: Extension of Transitional Policy through Calendar Year 2021 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 the small group market.1 This extended transitional policy covers policy years beginning on or before October 1, 2021, provided that all such coverage comes into compliance with specified requirements by January 1, 2022.2 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 1 INFORMATION Extension of Limited Non-Enforcement Policy through https://www.cms.gov/files/document/extension-limited-non-enforcementpolicy-through-calendar-year-2021.pdf. 2 Id. 3 https://www.cms.gov/CCIIO/Resources/Letters/Downloads/commissioner-letter-11-14-2013.pdf. DAVID Y. IGE GOVERNOR JOSH GREEN LT. GOVERNOR CATHERINE P. AWAKUNI COLÓN DIRECTOR JO ANN M. UCHIDA TAKEUCHI DEPUTY DIRECTOR MEMORANDUM 2020-1H August 14, 2020 Page 2 of 3 - only available to business or individuals enrolled prior to October 1, 2013. 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 Oct. 1, 2018, provided that the policies end by Dec. 31, 2018.6 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 On March 25, 2019, CMS granted an extension for transitional policies beginning on or before October 1, 2020, provided that all such coverage comes into compliance with specified requirements by January 1, 2021.8 CMS Extension through December 31, 2021 On January 1, 2020, CMS granted an extension for transition policies beginning on or before October 1 provided that all such coverage comes into compliance with the specified requirements by January 1, 2022.9 The State of Hawaii elects to adopt the extension for the small group market. Therefore, insurers in the small group market may renew transitional policies beginning on or before Oct. 1, 2021 so long as such coverage comes into compliance with specified 4 5, 2014), available at https://www.cms.gov/cciio/resources/regulations-and-guidance/downloads/transition-tocompliant-policies-03-06-2015.pdf. 5 INFORMATION Extension of Transitional Policy through https://www.cms.gov/CCIIO/Resources/Regulations-and- Guidance/Downloads/final-transition-bulletin-2-29-16.pdf. 6 INFORMATION Extension of Transitional Policy through https://www.cms.gov/CCIIO/Resources/Regulations-and- Guidance/Downloads/Extension-Transitional-Policy-CY2018.pdf. 7 - INFORMATION- Extension of Transitional Policy through (April 9, 2018), available at https://www.cms.gov/CCIIO/Resources/Regulations-and- Guidance/Downloads/Extension-Transitional-Policy-Through-CY2019.pdf. 8 INFORMATION Extension of Limited Non-Enforcement Policy through at https://www.cms.gov/CCIIO/Resources/Regulations-and- Guidance/Downloads/Limited-Non-Enforcement-Policy-Extension-Through-CY2020.pdf. 9 INFORMATION Extension of Limited Non-Enforcement Policy through https://www.cms.gov/files/document/extension-limited-non-enforcementpolicy-through-calendar-year-2021.pdf. MEMORANDUM 2020-1H August 14, 2020 Page 3 of 3 requirements by January 1 Series INFORMATION Extension of Limited Non-Enforcement Policy through Transitional Plans are only available to small business enrolled prior to October 1, 2013. If you have any question, please e-mail ihealth@dcca.hawaii.gov.