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CMS Announces Extension of Grandmothered Plans

The Centers for Medicare & Medicaid Services (CMS) just released guidance yesterday extending grandmothered plans.  Under this guidance, non-compliant Affordable Care Act (ACA) plans sold in the individual and small group markets may continue to be offered without being subject to the market reform rules of the ACA.  Individuals and employers in these plans will be considered compliant with ACA market reform rules for this period of time.

CMS will work with issuers and States to implement this policy, including options such as allowing policy years that are shorter (but not longer) than 12 months or early renewals with a January 1, 2018 start date. States can elect to extend the transitional policy for shorter periods than outlined above (but may not extend it beyond these periods).

States may adopt for small group only, individual only, or both small and individual group markets.





President Obama announces ability to "keep existing plan" for 2014, if their state's DOI and their carrier allow it

Some states already allowed, and group carriers offered early renewals:

  • Individual
  • Small Group (2-50)


Center of Medicare and Medicaid Services (CMS) announces additional two-year extension

Plan years on or before October 1, 2016:

  • Individual
  • Small Group (2-50)


CMS announces an additional one-year extension

Plan years on or before October 1, 2017 with policies ending December 31, 2017

  • Individual
  • Small Group (2-50)


CMA announces an additional one-year extension

Plan years on or before October 1, 2018 with policies ending December 31, 2018

  • Individual
  • Small Group (2-50)

Click here to download CMS Announces Extension Of Grandmothered Plans: Issue Date 02.27.17