Extension of Major Medical Transitional Policies through Calendar Year 2021
Phoenix - The Arizona Department of Insurance (ADOI) announced today that insurers in the individual and small group1 major medical health insurance markets can choose to renew transitional policies for a policy year beginning on or before October 1, 2021. Transitional policies are policies that individuals had in place before the Affordable- Care-Act went into full effect on January 1, 2014. At least 6 health insurers have individual or small group transitional policies still in effect in Arizona. Arizona has continued to extend these transitional plans (also known as grandmothered plans) so that individuals do not lose their coverage.
This extension is the maximum extension permitted under the Insurance Standards Bulletin issued on January 31, 2020 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 44,000 Arizonans through the end of 2021. Insurers that offer this extension of transitional coverage are required to send each policyholder a renewal notice that explains the offer to continue the transitional policy through the end of 2021 and includes information regarding any related price increase. Insurers must also send a 90-day notice for the final discontinuation of the transitional plans.
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.
1Small Group refers to a policy issued to an employer who employs at least two but not more than fifty eligible employees (ARS § 20-2301(A)(21)).