Archive for July, 2014

Do you understand Health Benefit Plans and Special Enrollment Periods?

July 10th, 2014 by Marie DeWolf

A recent DORA- Department of Regulatory Agencies Bulletin No B-4.76  states the following in regard to: SHORT TERM, LIMITED DURATION HEALTH BENEFIT PLANS AND SPECIAL EN ROLLMENT PERIODS

  • These listed policies do not qualify as the minimum essential coverage required under the Affordable Care Act (ACA).
  • Consumers must have a health benefit plan that qualifies as minimum essential coverage in order to avoid the federal tax penalty for not possessing such coverage.
  • Please be informed that the loss or termination of a short-term health plan (STM) does not trigger a special enrollment period that would allow a consumer to purchase an ACA-compliant health benefit plan outside of an open enrollment period.
  • Prior to issuance, carriers should inform consumers that the purchase of a short-term health plan may not provide protection from the federal tax penalty. There should be a paragraph in BOLD TYPE referencing this coverage.

Please contact DeWolf-Tarin & Associates and let us help you navigate the do's and don't's of the Affordable Care Act (ACA).