HAP Extends non-ACA Compliant Policies for Small Groups and IndividualsHAP small group and Personal Alliance customers who like their existing coverage can keep it for up to two more years before switching to an Affordable Care Act-compliant plan
Detroit – April 16, 2014 – The Michigan Department of Insurance and Financial Services announced that Michigan health insurance companies can allow customers to keep their current health plans that do not comply with the Affordable Care Act (ACA) through October 1, 2016. Health Alliance Plan (HAP) is pleased to extend this option to its small group and individual customers.
In the small group market, HAP customers who are currently in a non-ACA compliant plan will have the option to renew their existing coverage, with a slight annual rate increase, through Oct. 1, 2016. They may also move to an ACA-compliant Qualified Health Plan (QHP) at any time.
In the individual market, the vast majority of HAP Personal Alliance members took advantage of HAP's 2013 Lock-In Rate Program to extend coverage in their existing plans into 2014. These customers can renew their HAP Personal Alliance plan for up to two more years. Upon renewal, they have two options: keep their existing coverage with a slight premium rate increase applied each year to cover the rising costs of medical services, or enroll in a QHP during the 2015 open enrollment period, which begins on November 15, 2014.
These renewal options give HAP customers the chance to stay in the plan they like and are familiar with for a longer period of time.
Customers who are impacted by this decision do not have to take any action right now. HAP will provide additional information prior to their renewal date and help guide them through their options. Customers are asked to keep in mind that if they choose to renew their current health plan, it may not guarantee certain protections under the ACA or cover the defined set of essential health benefits that QHPs must cover.