Extension of Major Medical Transitional Policies through Calendar Year 2019

Phoenix - The Arizona Department of Insurance (ADOI) announced today that insurers in the individual and small group major medical health insurance markets can choose to renew transitional policies for a policy year beginning on or before October 1, 2019, provided all transitional coverage ends by December 31, 2019. Transitional policies are non-Affordable-Care-Act-compliant policies that have been continuously in effect since by or before December 31, 2013. At least 6 health insurers have individual or small group transitional policies still in effect in Arizona.

This extension is the maximum extension permitted under the April 9th, 2018 Insurance Standards Bulletin issued by the Center for Consumer Information and Insurance Oversight (CCIIO), and gives insurers the option to continue the pre-2014 individual and small group policies covering approximately 70,000 Arizonans through the end of 2019. Insurers that choose to offer this extension of transitional coverage are required to send each policy holder a renewal notice that explains the offer to continue the transitional policy through the end of 2019 and includes information regarding any related price increase. Insurers must also send a 90-day notice for the final discontinuation of the transition plans, when applicable.

The extension does not affect grandfathered policies issued prior to March 23, 2010. These policies can remain in effect as long as they maintain grandfathered status.

For additional information on the Affordable Care Act, please visit the Arizona Department of Insurance website or call Consumer Assistance at (602) 364-2499.

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Arson Suspect Indicted in $120,050 Insurance Fraud Scheme

Phoenix, AZ The Arizona Department of Insurance (ADOI) Fraud Unit, in conjunction with the Phoenix Fire Department Investigations Unit, arrested Mohamed Abdulrahman on multiple felony charges, including arson of a structure, fraudulent insurance claim, and forgery. 

The fire occurred in a commercial storage building in the early hours of November 1st, 2017.  When Mr. Abdelrahman was interviewed by insurance adjusters, he misrepresented details and facts during the claim process, which is a violation of Arizona statutes.  During the claim process, Mr. Abdelrahman pushed for a fast settlement, and even filed complaints with the Arizona Department of Insurance Consumer Affairs Division, requesting assistance because the insurance companies were not paying him for his losses.

During the four-month investigation that would ensue, investigators learned that Mr. Abdelrahman had increased his insurance coverage on the unit a few days prior to the fire.  Mr. Abdelrahman was in the area of the storage facility when the fire was discovered and used his vehicle to block first responders from entering the location, alleging his vehicle broke down in-front of the facility entrance. The building security cameras were sabotaged hours before the fire was reported.

The claims Abdelrahman filed with insurance companies totaled $120,050.00.  The case is being prosecuted by the Arizona Attorney General’s Office for criminal charges.  If found guilty, Mr. Abdelrahman could receive up to 12 1/2 years in prison.

For a copy of the indictment, CLICK HERE.

FY 2019 INSURER ANNUAL ASSESSMENT INVOICES ARE AVAILABLE

Click here to view invoices for annual assessments to insurance companies and service companies. Invoices will also be sent by mail July 10, 2018. Payments are due August 7, 2018. 

Please consider using the OPTins Assessment account to pay your assessment invoice.