COVID-19 State of Emergency: Suspension of Individual Health Benefit Plan Cancellations and Nonrenewals Due to Nonpayment of Premium

BULLETIN 20-30 (Revised) To: All Health Carriers Offering Individual Health Benefit Plans Re: COVID-19 State of Emergency: Suspension of Individual Health Benefit Plan Cancellations and Nonrenewals Due to Nonpayment of Premium. Date: August 11, 2020 Bulletin 20-30, which was issued on July 30, 2020 regarding suspension of individual health benefit plan cancellations and nonrenewals due to nonpayment of premium, is hereby revised to identify limited exceptions to the suspension of terminations of individual health benefit plans for non-payment of premium in light of the Coronavirus Emergency Special Enrollment Period initiated by the Maryland Health Benefit Exchange (“Exchange”) as of August 7, 2020. On March 5, 2020, Governor Larry Hogan issued a Proclamation declaring a State of Emergency and that a Catastrophic Health Emergency exists in the State of Maryland. The Proclamation was renewed on May 6, 2020, June 3, 2020 and July 1, 2020. Pursuant to § 2-115 of the Insurance Article and COMAR 31.01.02.05 and 06, the Commissioner is invoking her emergency powers to activate COMAR 01.02.06A(1), which provides that the Commissioner may require health carriers to: “Suspend health benefit cancellations and nonrenewals.” Accordingly, effective immediately, health carriers are to suspend health benefit cancellations and nonrenewals of individual health policies for non-payment of premium, unless the conditions set forth below are satisfied. The Commissioner is activating this requirement only with respect to individual health benefit plans, as defined in § 15-1301 of the Insurance Article. Additionally, the Commissioner is only requiring carriers to suspend cancellations and nonrenewals due to nonpayment of premium. Cancellations and nonrenewals for reasons other than nonpayment of premium that are otherwise permitted by the terms of the contract and applicable law are still permitted. KATHLEEN A. BIRRANE Commissioner JAY COON Deputy Commissioner LARRY HOGAN Governor BOYD K. RUTHERFORD Lt. Governor 200 St. Paul Place, Suite 2700, Baltimore, Maryland 21202 1-800-492-6116 TTY: 1-800-735-2258 www.insurance.maryland.gov Notwithstanding the above, a health carrier is permitted to cancel or non-renew an individual health benefit plan due to nonpayment of premium if:  Open Enrollment or the Coronavirus Emergency Special Enrollment Period offered by the Maryland Health Benefit Exchange (“Exchange”) is in effect; AND  The health carrier has complied with the grace period and notice requirements set forth in the policy being terminated; AND  The health carrier provides an additional written notice of date of termination at least 10-days prior to the effective date of termination that includes a disclosure statement in at least 12-point bold type advising the member that the Exchange is offering a Coronavirus Emergency Special Enrollment Period, that subsidies for the payment of premium may be available, if the member is eligible; that coverage through the Exchange does not depend on the payment of any premium owed under the policy being terminated; and providing the web address and toll-free number for the Maryland Health Connection; AND  The termination is effective on the last day of a month. This regulation shall be in effect for a period of 60 days from July 30, 2020, at which time the Commissioner will determine whether to renew the Bulletin. The regulations previously activated in Bulletins 20-05, 20-06, and 20-22 shall remain in effect until the emergency declaration is lifted or the Commissioner issues a Bulletin deactivating the regulations at issue. Questions about this Bulletin may be directed to the Life & Health Unit of the Maryland Insurance Administration at 410-468-2170.