According to the bulletin, CMS will allow states to extend the life of transitional plans — “grandfathered” plans that are exempt from most of the ACA’s insurance reform provisions — to policy years that begin on or before Oct. 1, 2018, as long as the policies do not extend past Dec. 31, 2018.
This is the fourth extension CMS has given to these policies. In November 2013, CMS announced it would allow insurers to extend non-ACA-compliant health plans, which would otherwise be cancelled, for policy years beginning before Oct. 1, 2014. In March 2014, CMS announced it would allow insurers to extend these plans to coverage renewed by Oct. 1, 2016. On Feb. 29, 2016, CMS issued an extension for non-ACA-compliant policies that end by Dec. 31, 2017.
Regarding the extension issued Thursday, CMS said, “This approach will facilitate smooth transitions from transitional coverage to Affordable Care Act-compliant coverage, which requires a calendar year policy year in the individual market.”
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