Insurers will now have the choice to extend transitional policies for an additional year to ease transition under Affordable Care Act
CHICAGO, IL â€” The Illinois Department of Insurance (DOI) announced that Illinois will comply with the federal governmentâ€™s request for an extension of transitional health plans for the 2015 plan year. This extension will give insurers the option to renew existing plans with current policyholders for one year, beginning on or before October 1, 2015, in the small group and individual markets. Plans eligible for renewal under this extension will not be considered out of compliance with market reforms.
â€œIllinois is pleased to support President Obamaâ€™s efforts to make the transition under the Affordable Care Act as smooth as possibleâ€ DOI Director Andrew Boron said. â€œThis extension will benefit consumers, allowing individuals to keep their current plans during this time of transition as we strive to provide better and more affordable healthcare for each and every individual.”
On March 5, 2014 the Centers for Medicare & Medicaid Services (CMS) issued a letter extending the transitional policy for plans in the small group and individual markets. The transitional policy was originally issued on November 25, 2013, following President Obamaâ€™s request to give insurers the choice to renew existing health insurance policies for the 2014 plan year.
Under the extension, plans sold before January 1, 2014 and renewed between January 1, 2015 and October 1, 2015 will be eligible for renewal under this extension. The Department of Insurance will join with the federal Department of Health and Human Services to forego enforcement of certain Affordable Care Act requirements. For more information, the Department of Insurance has issued Company Bulletin 2014-04 setting forth the guidelines that apply to renewals under this extension.