On November 14, 2013, the Center for Consumer Information and Insurance Oversight (CCIIO) announced a transitional policy that will permit health insurance issuers to continue to renew plans for individuals and small businesses for plans in place as of October 1, 2013. These plans would otherwise be modified or canceled because they do not meet minimum coverage requirements and financial protections under the ACA.
CCIIO left the ultimate decision regarding whether or not to implement the transitional policy to state insurance regulators and insurance carriers.
Insurance Director Germaine Marks said changing the rules at this point in time creates uncertainty for consumers and insurance carriers. “We continue to be focused on how the reforms may impact premiums, the solvency of insurers, and the overall health and stability of Arizona’s insurance marketplace. To that end, we are confident that this determination helps Arizona insurance consumers consistent with Arizona law.”
Arizona law does not prohibit the offer of early renewals and this option minimizes the ACA’s impact on policyholders by extending the availability of existing non-ACA compliant policies, who would otherwise receive cancellation notices effective December 31, 2013. Some of Arizona’s carriers have already offered policyholders the option to extend their 2013 coverage into 2014.
Some of the offers are cost prohibitive according to witnesses at yesterday’s Congressional field hearing in Apache Junction.
“In Arizona, we’ve been working with our insurance carriers on the best way to mitigate the impact on consumers by giving them the option to early renew their existing policies,” Insurance Director Germaine Marks said.
The ADOI says that it is encouraging “those carriers to continue to offer this option and also encourages the carriers who have not offered early renewals to offer the extension of coverage. Carriers will assist policyholders who choose not to exercise the early renewal option with finding alternative affordable coverage.