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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