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Massachusetts Companies with 51-100 Employees Get Transition Period for Health Insurance Changes

Massachusetts employers received good news recently regarding health insurance. Governor Baker announced that the Massachusetts Division of Insurance will implement a transitional relief policy regarding a key provision of the Affordable Care Act. This transition relief may provide employers with 51 – 100 employees – who are rated currently within the large group market – to renew their existing health insurance coverage for an additional year.

Without this transitional relief, 51-100 Employers would be merged with and rated in the small group market for the 2016 policy year, in accordance with ACA provisions. But by extending similarly-rated coverage for an additional year, this should help to maintain a level of predictability of cost for Massachusetts’ employers in both the small and large group markets.

In regards to individual carriers,  the state’s guidance says the following: “The Division will allow but not require carriers to permit 51-100 Employers to renew their existing 2015 health plans on or before October 1, 2016, with such renewal period limited to only one year.”  It also states “Carriers must notify the Commissioner of Insurance by no later than September 15, 2015 of their intention to offer the transitional renewal option to their 51-100 Employers.

As a result, we will be monitoring for information on this topic from some of the key carriers that provide insurance policies for our clients.

Click here to read the state’s bulletin >>


If you have any questions about how this change or other aspects of the Affordable Care Act may impact your business, please contact the CBG Benefits team at 781-759-1222 or via email at info@CBGBenefits.com.

Image courtesy of Stuart Miles / FreeDigitalPhotos.net

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Posted in: Benefits and Insurance, Human Resources, Legislation

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