Employee Benefits: White House Extends Transition Policy For Canceled Health Plans


On November 14, 2013, the White House announced a transition policy for 2014 that allows health insurance issuers to continue policies that do not meet Affordable Care Act (ACA) standards. This was in response to pressure from consumers and Congress after millions of Americans received notices in late 2013 informing them that their insurance plans were being canceled because they did not comply with ACA reforms.

On March 5, 2014, the Obama Administration announced a two-year extension to the transition policy for individual and small group health plans that do not comply with the ACA’s market reforms.

This extended transition relief, which applies for policy years beginning on or before October 1, 2016, gives health insurance issuers the option of renewing policies for current enrollees without adopting all of the ACA’s market reforms for 2014, if permitted by their states. Thus, individuals and small businesses with 2 – 50 employees may be able to keep their non-ACA compliant coverage into 2017, depending on the plan or policy year. Carriers that renew coverage under the extended transition relief must, for each policy year, provide a notice to affected individuals and small businesses.

If you have any questions regarding the new healthcare laws, please contact a Watkins Insurance Group agent. We want to make the process easier to understand and assist your to find the best plan for your business needs.

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