CMS extends transitional policy for non-grandfathered coverage

The Centers for Medicare & Medicaid Services today announced it will extend its transitional policy for non-grandfathered coverage in the small group and individual health insurance markets to policy years beginning on or before Oct. 1, 2018, provided that all such policies end by Dec. 31, 2018. Under the transitional policy, announced in November 2013, health plans may choose to continue certain coverage that would otherwise be cancelled, and affected individuals and small businesses may choose to re-enroll in such coverage. Health insurance issuers that renew coverage under the extended transitional policy must, for each policy year, provide notice to affected individuals and small businesses as specified in previously issued guidance, and states may only permit issuers to renew policies that they have continually renewed since 2014. “We are committed to smoothly bringing all non-grandfathered coverage in the individual and small group markets into compliance with all applicable [Public Health Service] Act sections, including those relating to single risk pools,” the agency said.