Bulletin No. LH 2018-01: Extension of Transitional Policies Through Calendar Year 2019

FIVE CORPORATE PLAZA | 3625 NW 56TH ST., STE. 100 | OKLAHOMA CITY, OK 73112-4511 (405) 521-2828 | TOLL FREE (IN STATE) 1-800-522-0071 OKLAHOMA INSURANCE DEPARTMENT STATE OF OKLAHOMA BULLETIN NO. LH 2018-01 To: All Health Insurance Companies and Health Maintenance Organizations Re: Extension of Transitional Policies Through Calendar Year 2019 From: Oklahoma Insurance Department Date: April 20, 2018 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 April 9, 2018 regarding the Extended Transition to Affordable Care Act – Compliant Policies. Here is a link to the CMS bulletin: www.CMS.gov/CCIIO/Resources/Regulations‐and‐ Guidance/Downloads/Extension‐Transitional‐Policy‐Through‐CY2019.pdf. As with past CMS guidance on this topic and, with permission by state regulators, health insurance issuers could choose to continue certain coverages that must otherwise be cancelled under the Public Health Service Act. These issuers will not be considered to be out of compliance with ACA market reforms if specific conditions are met. With guidance issued in its April 9, 2018 announcement, CMS has extended the transitional policy once again. Based on this most recent CMS announcement, the Department advises carriers that existing transition policies may be renewed for policy years beginning on or before October 1, 2019, provided that all transition policies end by December 31, 2019. 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 or less policy duration, provided that all affected policies terminate in compliance with the December 31, 2019 deadline. Renewal actions must be consistent with and conform to applicable Oklahoma law governing insurance renewals. Health insurance issuers that renew transitional policies must provide the required notice to affected individuals and small businesses as specified in the CMS April 9, 2018 bulletin referenced above. 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), Oklahoma GOVERNOR MARY FALLIN INSURANCE COMMISSIONER JOHN D. DOAK FIVE CORPORATE PLAZA | 3625 NW 56TH ST., STE. 100 | OKLAHOMA CITY, OK 73112-4511 (405) 521-2828 | TOLL FREE (IN STATE) 1-800-522-0071 Insurance Department, Five Corporate Plaza, 3625 NW 56th, Suite 100, Oklahoma City, OK 73112.