White House Announces Transition Policy for Canceled Health Plans
November 18, 2013
Over the past few months plans not compliant with ACA rules have received cancellation notices. On November 14, 2013, President Obama announced a transition policy for 2014 which may allow individual and small businesses to keep these noncompliant policies for another year.
This one year reprieve may not be available to all consumers that have received cancellation notices. Cottingham & Butler encourages moving forward with ACA compliant plan decisions already in place as this transition policy may not be available from all carriers in all states.
State insurance regulators will need to approve the transition policy in the individual states, and insurance carriers are not required to follow the transition relief and renew plans. If they do renew plans under the transition relief, carriers must send a notice to individuals and small businesses that includes certain information, including: information about the Health Insurance Exchanges and any ACA reforms that would not be reflected in the renewed coverage. CLICK HERE for further information on this development.
It is likely we will see further legislative action in the upcoming days and weeks that could reshape the rules.
CONTACT US IF YOU HAVE QUESTIONS
We will continue to keep our clients informed as further information becomes available. If you have questions, please contact your Cottingham & Butler representative.
