On February 23, 2021, Commissioner Downing issued an Informational Bulletin to announce a one-year extension of transitional relief for certain non-grandfathered individual and small group policies known as “grandmothered” policies. The bulletin follows the CMS extension of the federal non-enforcement policy concerning specific ACA compliance requirements for these plans.
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 Montana and allows the issuer to renew these non-ACA compliant plans.
The Commissioner’s adoption of the extension under the bulletin applies to policy years beginning on or before October 1, 2022, and coverage extending through December 31, 2022.
Accordingly, small employers who are currently covered by such “grandmothered” policies issued in the state should be aware of the bulletin. These employers should work with their advisors and insurers regarding possible renewal of the coverage.
Informational Bulletin »
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