‘Grandmothered’ Health Plans Get Another Year

Individual and small-group health plans that do not comply with the Affordable Care Act’s coverage rule will be allowed to remain in effect for another year.

The Centers for Medicare & Medicaid Services issued guidance today that allows these so-called “grandmothered” plans to continue operating until Dec. 31, 2018, at which time they must end.

It’s not the first time that grandmothered plans received an extension.

In March 2014, the Department of Health and Human Services permitted grandmothered plans to be renewed as late as Oct. 1, 2016, with the plans allowed to remain in force until as late as Sept. 30, 2017.

Then, another extension was issued in February 2016, allowing grandmothered plans to continue to renew up until Oct. 1, 2017, but with a termination date no later than Dec. 31, 2017.

An estimated 1 million people are covered by grandmothered plans in the 30 or more states that still permit them. The rest of the states already ended the sale of these non-ACA compliant plans.
Susan Rupe is managing editor for InsuranceNewsNet. She formerly served as communications director for an insurance agents' association and was an award-winning newspaper reporter and editor. Contact her at [email protected].

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Susan Rupe is editor in chief, magazine, for InsuranceNewsNet. She formerly served as communications director for an insurance agents' association and was an award-winning newspaper reporter and editor. Contact her at [email protected].