Background of the Policy
The original policy was announced in late 2013. At that time, millions of Americans learned their health insurance would be cancelled because it did not comply with the ACA’s reforms. Consumers and Congress voiced their concerns regarding the cancellations, so on November 14, 2013, President Obama announced the transition policy that gave consumers more time, and on March 5, 2014, they extended that for two years for policies beginning on or before October 1, 2016.
The transition relief extension is controlled at the state level. Overall, it states that any policy that has been or will be issued under the transitional relief in 2014 may be renewed through October 1, 2016 and will not be considered out of compliance with the ACA reforms. .
The ACA reforms include:
- Modified premium rating standards
- Availability and renewability for coverage is guaranteed
- Discrimination against pre-existing conditions is prohibited
- Coverage for individuals participating in clinical trials
- Essential health benefits package.