Iowa extends transitional health plans through 2021
The Iowa Insurance Division announced Thursday that transitional policies -- otherwise known as grandmothered health plans -- will be extended in
The division issued guidance to insurers and their consumers after the federal
Transitional plans are health policies purchased after the ACA was passed into law in 2010, but before it was implemented in 2014.
"I appreciate CMS taking the action to extend transitional policies through 2021," said Iowa Insurance Commissioner
"Without this action, over 82,000 Iowans would be forced off their health care plans and forced to choose between purchasing a policy that would be in excess of 25 (to) 200 percent higher than their current premiums or perhaps going uninsured," Ommen said.
He said that those who "have to bear the full brunt of those premiums would simply choose to not purchase ACA-compliant insurance through the marketplace."
Approximately 11.4 million people enrolled in a health plan through the federal ACA exchanges to cover the cost of their health care in 2019, which is a decline of about 300,000 people from 2018, according to CMS officials.
In
Officials noted the drop in enrollment nationwide and in
By the end of 2018, 31,868 Iowans received health care coverage through transitional plans. In 2014, 75,580 Iowans had transitional plans.
"Transitional policies are not a long-term solution, but ultimately only
Ommen has been a critic of the ACA for "structural flaws" within the federal program, including its income-only-based subsidy design and the lack of a predictable reinsurance mechanism, among others.
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