Determination for 2016 Transition to Affordable Care Act-Compliant Policies
The Department has considered all relevant factors in making its determination that insurers that renewed existing plans, on or before December 31, 2014, that otherwise would have been modified or canceled under the Affordable Care Act (ACA), may renew those transitional policies in the individual and small group markets through October 1, 2016. The transitional policies may not extend to policy years beginning after October 1, 2016, but by renewing the policies on or before October 1, 2016, carriers are extending coverage through September 30, 2017. This constitutes a one-year extension of the Department’s May 8, 2014 determination regarding transition policies and is consistent with the Center for Consumer Information and Insurance Oversight’s (CCIIO’s) March 5, 2014 bulletin.
Further, this determination applies to policies sold to large businesses of 51-100 employees currently in the large group market but that, for policy years beginning on or after January 1, 2016, will be redefined as small businesses purchasing insurance in the small group market.
The Department will not compel any carrier to renew transition policies if it chooses not to do so