Certain Individual and Small Group Health Plans Granted Extra Year to Comply with Reform Law
November 14, 2013
President Obama announced today that insurers may renew certain individual and small group health plans for 2014 without having to comply with new Affordable Care Act (ACA) requirements scheduled to take effect on January 1, 2014. Eligible policies include those with an effective date between January 1 and October 1, 2014 that would have otherwise been terminated.
According to the President, this change is "targeted" to those individuals who are in these policies today; it does not allow the sale of non-compliant plans to people not currently in plans.
With this decision, state governors and insurance commissioners may allow insurers to continue to offer plans that may have otherwise been cancelled until the end of 2014.
Insurers that elect to take advantage of the transitional policy are required to:
1. Notify enrollees about ACA requirements that are not met by the coverage they are renewing
2. Notify enrollees about the new health plan options and tax credits available on the public Marketplaces to those who qualify
Cigna is already working with all of our comprehensive individual medical customers to give them the choice of keeping their present plans.
Cigna's Starbridge and Fundamental Care limited-benefit programs are not eligible for extension under this guidance. We are continuing to sunset these programs on December 31, 2013, as previously communicated.
Cigna is not active in the Small Group market.
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