Extension of Renewal of Non-ACA-Complaint Policies

Indiana Department of Insurance May 24, 2019 Bulletin 250 EXTENSION OF RENEWAL OF NON-ACA-COMPLIANT POLICIES This bulletin is directed to all insurers issuing accident and sickness insurance policies, as defined at IC 27-8-5-1; all health maintenance organizations ("HMOs"), as defined at IC 27-13­ 1-19 (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 oftransitional policies, initially announced in Bulletin 205, to October 1, 2020. 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 ofthe Affordable Care Act (hereinafter "transitional policies"). The Department subsequently issued Bulletin 205, which permitted transitional policies to be renewed in Indiana at the insurers' discretion. On February 29, 2016, CMS announced an extension oftransitional policies to policy years beginning on or before October 1, 2017, so long as all transitional policies end by December 31, 2017. The Deprutment subsequently issued Bulletin 227, which again permitted such policies to be renewed in Indiana at the insurers' discretion. On February 23, 2017, CMS announced an additional extension oftransitional policies to policy years beginning on or before October l, 2018, so long as all transitional polices end by December 31, 2018. The Department subsequently issued Bulletin 237, which again permitted such policies to be renewed in Indiana at the insurers' discretion. On April 9, 2018, CMS announced an additional extension oftransitional policies to policy years beginning on or before October 1, 2019, as long as all transitional polices end by December 31, 2019. The Department subsequently issued Bulletin 243, which again permitted such policies to be renewed in Indiana at the insurers' discretion. On March 25, 2019, CMS announced an additional extension of transitional policies to policy years beginning on or before October 1, 2020, so long as all transitional polices end by December 31, 2020. 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. Ifinsurers· choose to renew its transitional policies, the policies may be renewed for no longer 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 their transitional policies. Furthermore, consumers may not purchase new transitional policies or switch to a different insurer to replac~ an existing transitional policy. Transitional policies that have been canceled cannot be reinstated. Consumers should understand that rates for renewals oftransitional polices, as with all policies, may increase. It may be in an individual's best interest to explore all policy options. Questions regarding this Bulletin should be directed to compliance@idoi.IN.gov. Stephe W. Robertson, Insurance Commissioner