Extension of Transitional Policy Renewals

April 27, 2016 Bulletin 227 EXTENSION OF TRANSITIONAL POLICY RENEWALS This Bulletin is directed to all insurers issuing accident and sickness insurance policies, as defined by IC 27-8-5-1; all HMOs as defined by IC 27-13-1-9 (collectively, "insurers"); and all Hoosiers enrolled in accident and sickness insurance policies in the individual and small group markets. The purpose ofthis Bulletin is to extend the Department's position regarding the renewal of transitional policies, initially announced in Bulletin 205, to October 1, 2017. On March 5, 2014, the Centers for Medicare and Medicaid Services ("CMS") issued a bulletin providing for a two-year extension that would allow insurers to renew existing non­ grandfathered policies that do not comply with all requirements of the Affordable Care Act (hereinafter "transitional policies"). On March 31, 2014, the Department issued Bulletin 205, which permitted transitional policies to be renewed in Indiana at the insurers' discretion. On February 29, 2016, CMS announced an extension of transitional policies to policy years beginning on or before October 1, 2017, so long as all transitional policies end by December 31, 2017. Therefore, insurers may determine at their discretion whether to renew transitional policies that have been continually renewed since 2014 so long as the determination is made on a non-discriminatory basis. If insurers choose to renew transitional policies, the policies may be renewed for no longer than 12 months at a time, but may be renewed for periods shorter than 12 months. Insurers may choose from the following renewal options: • All individual and small group transitional policies; • Only individual transitional policies; or • Only small group transitional policies. The Department is not requiring insurers to renew its transitional policies. Furthermore, consumers may not purchase new transitional policies or switch to a different insurer to replace an existing transitional policy. Transitional policies that have been canceled cannot be reinstated. Consumers should understand that rates for renewals of transitional policies, as with all policies, may increase. It may be in an individual's best interest to explore all individual policy options. Questions regarding this Bulletin should be directed to compliance@idoi.IN.gov. Stephen . obertson, Insurance Commissioner