Extension of Transitional Policies

On April 21, 2021, Director of Insurance Dunning released a notice on the extension of transitional policies, extending the ability of health insurance carriers in the individual and small group market to continue transitional health insurance plans through calendar year 2022.

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, as long as the state allows for such an extension. Such transition policies are not required to be in compliance 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. This bulletin applies this most recent federal extension to the state and allows the issuer to renew these non-ACA compliant plans.

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

Notice »