As Mark Twain once wrote in a cable to a New York newspaper, “The report of my death was an exaggeration.” So, it is with “grandmothered” plans!
CMS gave “grandmother” new life in an announcement on April 9, 2018 extending the transition relief known as “grandmothered” plans.
Rather than terminating “grandmothered” policies at the end of 2018, this extension applies to policy years beginning “on or before October 1, 2019, provided that all such policies end by December 31, 2019.” The transitional relief applies to individual and small group markets.
The notice includes an attachment to be used if a cancellation notice has been sent to the policyholder and the carrier will now continue to policy. The notice provides guidance on differences between “grandmothered” plans and ACA-compliant plans. The notice also explains steps to take to choose a different policy.
As before, the extension of transitional relief allows states to decide whether and to what extent to allow transitional relief. As such, brokers and consumers should look to their state’s insurance regulators for further guidance.