Group News Updates – April 2016

Transitional Plans Extended Through 2017

The current timeline of the Affordable Care Act (ACA) includes the discontinuation of any transitional (grandmothered) benefits for the individual and small business market with 50 or fewer employees.

A recent legislative update from the Centers for Medicare and Medicaid Services (CMS) extended transitional plans through December 31, 2017. The update indicates all non-grandfathered individuals and small group employers with transitional plans will convert to an ACA Metal plan effective January 1, 2018, regardless of their current renewal. This is the second extension for transitional plans.

The Ohio Department of Insurance (ODI) is currently researching the mechanics of the extended transitional policy given the CMS guidance and previously issued state guidance. ODI intends to distribute guidance to the carriers in May. We will maintain close communications with you and your clients throughout the next several months. We have every intention to retain your transitional small group employers as customers, and we will be communicating any and all alternatives to the broker and the customer. This is clearly an opportunity for carrier, broker and customer to stay connected and consider all available options.

Source: Medical Mutual Broker Update 3/30/2016