On February 11, 2021, the Department of Insurance and Financial Services (DIFS) issued Bulletin 2021-08 providing notification that DIFS will allow issuers offering ACA-compliant individual health coverage not on the Marketplace to participate in the Special Enrollment Period (SEP) to the same extent as issuers offering ACA-compliant individual coverage on the Marketplace.
Executive Order 14009 issued by President Biden on January 28, 2021 permits a 90-day SEP on the federal marketplace exchange, allowing uninsured and under-insured individuals to apply for coverage during the ongoing COVID-19 public health emergency. The SEP begins February 15, 2021, and continues through May 15, 2021.
The DIFS bulletin explains that all issuers offering coverage that is not offered on the Marketplace who choose to participate in the SEP must comply with all applicable state and federal statutes, including MCL 500.3472(1) which prohibits discrimination based on health status, claims experience, receipt of healthcare or medical condition during open enrollment.
This information may be of use to employees who have not been able to enroll in other coverage. However, this SEP for non-exchange coverage would likely not give rise to a qualifying event that would allow employees to terminate their employer group health plan coverage. It’s also important to note that these private health plans often meet ACA requirements, but consumers would not qualify for premium tax credits in order to help pay for them.
Bulletin 2021-08 »
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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