Administration Announces a Temporary Fix for Individual and Small Group Health Insurance Policies

March 2017

In response to nationwide complaints about health insurance plans being cancelled or not renewed because of the requirements of the Affordable Care Act (ACA), the Obama Administration announced on November 14, 2013 that it is offering a one year moratorium on key aspects of the market reform provisions under the Act.

In a letter released by the White House from the Centers for Medicare & Medicaid Services (CMS) to the State Insurance Commissioners, the Administration announced that it will permit insurance companies to renew individual and small group health insurance policies for one year, regardless of whether they meet the ACA's market reform requirements.  Subject to certain requirements (discussed below), the letter indicates that this fix, a moratorium on the application of these market reforms under ACA, will be in place for policies in effect on October 1, 2013, allowing them to renew for a policy year commencing between January 1, 2014 and October 1, 2014.  The letter indicates that the impact of the moratorium will be reviewed, and a decision on whether it will be extended will be made at a later date.

To learn more about the impact of this and other health care reform decisions, please visit Peel & Holland University, where we have posted a document titled Administration Announces a Temporary "Fix" for Individual and Small Group Health Insurance Policies.

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