Legal Alert – CMS Extends Transition Relief for Non- Compliant Plans through 2019

On April 9, 2018, the Centers for Medicare & Medicaid Services (CMS) announced another one-year extension to the transition policy for individual and small group health plans that allows issuers to continue policies (called “grandmothered” plans) that do not meet ACA standards. The transition policy was originally announced in 2013 and has previously been extended several times. Now, it has been extended to policy years beginning on or before October 1, 2019, provided that all policies end by December 31, 2019. This means individuals and small businesses may be able to keep their non-ACA compliant coverage through the end of 2019, depending on the policy year. Carriers may have the option to implement policy years that are shorter than 12 months or allow early renewals with a January 1, 2019 start date in order to take full advantage of the extension.

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