New option for transition into Obamacare

The Obama administration last Nov. 14 announced a transitional policy that allows health insurers to renew current policies for current enrollees without adopting the 2014 market rules—giving consumers in the individual and small group markets the choice of staying in their plan next year. This decision was made to help smooth out the transition into ACA compliance and to ensure consumers are not abruptly cancelled from their plan or policy.

Adopting this new policy is optional for state regulators and CNMI Secretary of Commerce and Insurance Commissioner, Sixto K. Igisomar, has announced today that the CNMI will allow insurance carriers to offer this renewal option.

“This renewal option will give CNMI health insurance consumers and carriers more time to transition into plans that are compliant with the 2014 provisions of the Affordable Care Act,” explained Igisomar. “This transition option may not be available for everyone however, because it is at the insurance issuer’s discretion to offer this option.”

The CNMI Insurance Section issued an administrative notice to carriers on Wednesday which outlines the rules and requirements of offering this new option to current enrollees. Specifically, this transitional policy only applies to renewal of current plans and does not mean that new plans or policies offered in 2014 are exempt from following the new health care reform rules.

“We have also issued standard notices that insurance carriers must use to inform their enrollees of this option, if they choose to offer it,” added Igisomar. 

FAQs and guidance issued from the Centers for Medicare and Medicaid Services (CMS) confirm that these renewed plans must still comply with all reforms up to 2013 and that this renewal offer does not apply to grandfathered plans.

What this means for you

Consumer advocacy officer, Kaitlyn Neises-Mocanu of the CNMI Consumer Assistance Program (CAP) offered this clarification for consumers, “This means that if you like the individual or small-group market plan or policy you have had since October 1st, 2013, you can still renew it in 2014, even if it is not compliant with the new 2014 rules. Your insurance company must determine if they are able to offer you this option, but your insurer needs to send you a letter clearly explaining your options if they do offer it.”

This new option is separate from Gov. Eloy S. Inos’ request for an implementation extension of Affordable Care Act market reforms sent to Department of Health and Human Services Secretary, Kathleen Sebelius, in October. The governor has yet to receive a response to this request.

This is the third notice to carriers issued in the past few months from the CNMI Insurance Section regarding compliance with the federal health care reform.

The new administrative notice, the standard notices that carriers must use to inform enrollees, and FAQs and guidance issued from CMS are available to the public on the CNMI CAP website, cnmicap.wordpress.com. You may also pick these up by request from the CAP office on the second floor of the Department of Commerce.[I] (Office of Governor)[/I]