In November 2013, CMS issued a letter to state insurance commissioners outlining a transitional policy for certain non-grandfathered coverage in the small-group and individual health insurance markets. In the letter, CMS stated that, if allowed by applicable state authorities, health insurance issuers would be able to choose to continue certain coverage that could not otherwise remain in place without significant changes to comply with ACA requirements, and individuals and small businesses with such coverage could, as a result, choose to re-enroll in such coverage. At the end of January, CMS extended this policy, under which CMS will not take enforcement action against certain non-grandfathered health insurance coverage in the individual and small-group market that is out of compliance with certain specified market reforms
CMS further stated that, under the non-enforcement policy, non-grandfathered health insurance coverage in the individual or small-group market that is renewed for a policy year starting between January 1, 2014, and October 1, 2014, would not be treated as being out of compliance with certain market reforms set forth below if certain specific conditions are met. The extended non-enforcement policy applies for policy years beginning on or before October 1, 2021, provided that all such coverage comes into compliance with the specified requirements by January 1, 2022. Under the extended non-enforcement policy, health insurance coverage in the individual or small-group market that meets the criteria of the extended policy and associated group health plans of small businesses, as applicable, will not be treated by CMS as out of compliance.
Read CMS’ Insurance Standards Bulletin to learn more.
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