Late February 2016, CMS sent out a bulletin for extended transitional policies. The bulletin outlined to extend small group health insurance policies to Dec. 31st 2017. The former rule was that these policies would be terminated on October 1st, 2017.
How does this impact Indiana small group health plans?
If you purchased a health plan that is considered “grandmothered” that plan will continue until Dec.31st 2017. This will allow you to keep that coverage for the entire 2017. These plans can be anywhere from 30% cheaper than ACA compliant plans. This is because of the rules of the ACA with small group.
CMS in their infinite wisdom, realized the huge problem that was going to occur if the plan ended in October. Now Indiana companies will be able to start a new group plan on the calendar year.
Beginning Jan. 1st 2018, all small group health plans will have to move to ACA complaint plans with the exception of grandfathered plans.
There is fear that we could see the additional decline in employer sponsored health plan in 2018. Very few business owners are going to accept a 30% rate increase. In Indiana, we have seen new solutions for the small group health coverage. There are association plans and even partially self-funded options.
January 1st is one of the most hectic times in the insurance world, it’s better to start reviewing options sooner than later. July 2017, you should contact us and we will deliver every options that is available for you to review.