|Our business clients can keep their current benefit plans even longer
Earlier this year, guidance from the Center for Medicare & Medicaid Services (CMS) brought news related to non-ACA (Affordable Care Act) benefit plans. This guidance means that certain employer groups (up to and including 50) can keep their current medical benefit plans and continue to be medically underwritten until December 31, 2017*. This is an extension of the non-ACA Transitional Relief program.Here’s how it works. When small employer groups with non-ACA benefit plans receive their October, November or December renewal packages,1 they can add a short contract period at the end of the 2016 policy cycle. This will extend their medical benefits to December 31, 2017. The short contract period will not change the 2016 renewal premium or benefit plan election.
Example: an October renewing group can choose to add a 3-month term at the conclusion of their regular 12-month term ending in September 2016.
As always, we encourage our clients to carefully review the cover letter and the Renewal & Acceptance form included in their renewal package. Keep in mind there are different considerations for calendar year versus plan year contracts. These materials will outline all available renewal options and the confirmation due date.
No employer group is required to elect this option. Employer clients have many considerations to take into account. Electing to maintain their current plan longer and renewing for a short period, is entirely their choice.
*Only in those states that allow non-ACA transitional policies.
1 To the extent we can accommodate it, employers with a non-ACA benefit plan renewing prior to October 1 will also have the opportunity to elect a short contract and keep their benefits until December 31, 2017.
Markets for Aetna products in which this program is available are AK, AZ, FL, GA, IL, MO, OH, OK, PA, TX, TN. List subject to change. Markets for Coventry products in which this program is available are FL, GA, IA, IL, KS, LA, MO, NC, NE, OH, OK, PA, SC, UT. List subject to change.