State Updates

Extension of Non-ACA-Compliant Small Group and Individual Policies and Plans

 

On March 3, 2021, Ohio Superintendent of Insurance French released Bulletin 2021-01, extending the ability of health insurance carriers in the individual and small group market to continue transitional health insurance plans that renew for a policy year starting on or before October 1, 2022, if the transitional policy ends by December 31, 2022. Previous bulletins referred to this as a “transitional policy,” but the new bulletin calls the policy a “non-enforcement” policy. The state has extended this transitional relief several times.

On January 19, 2021, CMS provided guidance for a transition policy extension that allows insurers the option to renew non-grandfathered non-ACA-compliant plans, if the state allows for such an extension. Such transition policies are not required to comply with certain ACA mandates including community rating, coverage of essential health benefits, prohibition on pre-existing condition exclusions and the annual out-of-pocket maximum limit. The bulletin applies this most recent federal extension to Ohio and allows the issuer to renew these non-ACA compliant plans.

Small employers that are interested in renewing their non-ACA-compliant plan issued in the state should work with their advisors and insurers.

Bulletin 2021-01 »

PPI Benefit Solutions does not provide legal or tax advice. Compliance, regulatory and related content is for general informational purposes and is not guaranteed to be accurate or complete. You should consult an attorney or tax professional regarding the application or potential implications of laws, regulations or policies to your specific circumstances.

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