Illinois Department of Insurance Transitional Policy Extension
The Illinois Department of Insurance has announced an extension allowing insurance companies in Illinois to renew existing transitional policies. These policies are small group, non-ACA compliant policies that have been offered in the 1-50 market. They are non-grandfathered, small employer plans that were issued after March 23, 2010, but prior to January 1, 2014. These are not the same as existing grandfathered plans, which would have been in place prior to March 23, 2010. The status on grandfathered plans is remaining the same.
This extension will apply to plans that renew on or before October 1, 2017, at the discretion of the carrier, so long as the transition policy ends by December 31, 2017. Again, this only affects small group plans that are non-grandfathered and non-ACA compliance policies that were put in place after March 23, 2010 and prior to January 1, 2014.
Blue Cross Blue Shield of IL (BCBSIL) has announced it will be following this guidance and that groups covered under this transitional policy will be able to remain on their current plan throughout the 2016 plan year. It's likely that other carriers in Illinois will also opt to follow this guidance.
Please contact your Assurance representative with any questions.