Kentucky Association of Health Underwriters Announcement
The Department of Insurance would like to share some information about the President’s Affordable Care Act announcement last week and how we are implementing it in Kentucky.
• Under the Affordable Care Act (ACA), individual and small group policies had to meet the essential health benefit and adjusted community rating requirements at the first renewal in 2014. The President’s directive last week allowed insurers to offer one additional renewal for non-ACA compliant policies after 10/1/13. (For example, if a policy had an anniversary date of September 1, 2013, when that policy came up for renewal on September 1, 2014 the insured could renew that policy until September 1, 2015. At that time, the policy would need to transition to an ACA compliant policy.)
o This decision does not impact grandfathered plans (those in effect when the law passed on March 23, 1010.)
o This decision does not impact large group plans.
• Kentucky will be following the President’s directive and permitting insurers to withdraw their discontinuance notice. We have asked each insurer to let us know their business decision (whether they will be withdrawing continuation notices) by Friday, November 22.
o This is a business decision of the insurer. They are permitted to have a different business decision based on market segment (individual vs. small group) and blocks of business (closed vs. open.)
• Because individuals have the option to purchase affordable health benefit plans on a guaranteed issue basis with an effective date of January 1, 2014, Kentucky Access, the state’s high risk pool and market of last resort, will end coverage as of December 31, 2013.
• Because we are still in open enrollment, individuals that acted on a discontinuation notice and subsequently enrolled in an ACA compliant policy, may change that decision and renew their current policy.
• Insurers will not be permitted to amend rates currently approved for ACA compliant policies – the rates available through kynect will stay the same for the 2014 plan year.
• At this time, those who elected to early renew their policies are not impacted by this new option – those insureds have already received transitional relief and will not be able to withdraw early renewal and extend their policy into 2015.
Thank you for your patience as we work through these issues.
This statement was issued from:
DJ Wasson Administrative Coordinator
Kentucky Department of Insurance
Please call or email with any questions.
Ph: (502) 451-4560
300 Distillery Commons Louisville KY 40206