Iowa Insurance Division and the South Dakota Division of Insurance extends grandmothered policies through 2020

On March 25, the Center for Medicare and Medicaid Services (CMS) announced it would allow consumers to keep and extend their current non-grandfathered individual and small group health insurance plans through 2020.  On Thursday, April 4th the Iowa Insurance Division announced their agreement to extend the transitional policies through 2020 and on April 18th the South Dakota Division of Insurance approved the extension as well. Wellmark supports these decisions and will renew their grandmothered policies as allowed by both the Iowa Insurance Division and the South Dakota Division of Insurance.

This will allow Wellmark consumers to keep their current non-grandfathered Individual and Family Plans (IFP) and small group (plans with 1-50 employees), transitional health insurance plans through Dec. 31, 2020. These policies are Wellmark’s pre-Affordable Care Act plans, also known as grandmothered policies. The grandmothered policies are plans generally bought after the signing of the Affordable Care Act (ACA) on March 23, 2010, and before Jan. 1, 2014.  Grandmothered plans are not subject to all ACA requirements.

Individual and Family Plans:The extension of qualified grandmothered IFP health plans means members on these plans can maintain the same health coverage they have had in the past through the end of Dec. 31, 2020. If members wish to renew their current plan, there is no action needed. They can expect to receive a renewal notice from Wellmark later this year about their renewed plan.
Small Group Plans:Some small group policies will also be allowed to maintain their coverage into 2020. Small groups with a Jan. 1, 2020 renewal will have the option to renew their current plans for the 2020 plan year. Small groups with a plan renewal after Feb. 1, 2020 must comply with the Affordable Care Act requirements unless transitional relief is extended for an additional year.

If you have any questions, please contact the PIPAC Health Department at 319-277-8541.