Bulletin No. LH 2017-01 Extension of Transitional Policies Through Calendar Year 2018

GOVERNOR MARY FALLIN INSURANCE COMMISSIONER JOHN D. DOAK INSURANCE COMMISSIONER State of Oklahoma FIVE CORPORATE PLAZA, 3625 N.W. 56th STREET, SUITE 100 • OKLAHOMA CITY, OKLAHOMA 73112-4511 (405) 521-2828 • TOLL FREE (IN STATE) 1-800-522-0071 BULLETIN NO. LH 2017-01 To: All Health Insurance Companies and Health Maintenance Organizations Re: Extension of Transitional Policies Through Calendar Year 2018 From: Oklahoma Insurance Department Date: March 2, 2017 The purpose of this bulletin is to inform all Oklahoma licensed health insurance carriers of the requirements of the Oklahoma Insurance Department (“OID”) as they relate to the bulletin released by the Center for Medicare and Medicaid (“CMS”) on February 23, 2017 regarding the Extended Transition to Affordable Care Act – Compliant Policies. Previously, with guidance issued in its November 14, 2013, March 5, 2014 and February 29, 2016 bulletins, CMS announced that, with permission by State Regulators, health insurance issuers could choose to continue certain coverages that would otherwise be cancelled under the Public Health Service Act and will not be considered to be out of compliance with market reforms if specific conditions were met. With guidance issued in its February 23, 2017 announcement, CMS has again extended the transitional policy to policy years beginning on or before October 1, 2018, provided that all such policies end by December 31, 2018. Based on this most recent CMS announcement the OID advises carriers that existing transition policies may be renewed for policy years beginning on or before October 1, 2018, provided that all transition policies end by December 31, 2018. In an effort to minimize market disruption, issuers will again be given the discretion to renew existing extended transition policies in the individual and small group markets with a 12 month policy duration, shorter than 12 month duration or longer than 12 month duration provided that all affected policies terminate in compliance with the December 31, 2018 deadline. Renewal actions will be consistent with and conform to Oklahoma law governing insurance renewals. Health insurance issuers that renew under the extended transitional policy must provide the required notice to affected individuals and small businesses as specified in the CMS February 23, 2017 guidance. Questions or comments applicable to this bulletin should be directed to Mike Rhoads (mike.rhoads@oid.ok.gov) or Gordon Amini (gordon.amini@oid.ok.gov), 2 Oklahoma Insurance Department, Five Corporate Plaza, 3625 NW 56th, Suite 100, Oklahoma City, OK 73112.