Affordable Care Act Alert: White House Announces Transitional Relief

aca-alertOn November 14, 2013, the White House announced changes to the implementation of the Affordable Care Act (ACA) outlined in a letter from the Centers for Medicare & Medicaid Services (CMS) to state insurance commissioners. These changes will allow insurance companies to renew, for one year, individual and small group health insurance policies which were in place as of October 1, 2013, even if those policies do not comply with certain actuarial minimum benefits established by the ACA.

It is important to note that although the federal government has announced the above transitional relief, state insurance regulations may affect the specific insurance products available in each state. Currently, 18 states are operating their own state-based exchanges, 7 states are partnering with the federal government to provide exchanges and 25 states are using the federal government’s exchange platform. We recommend that Taxpayers who have specific questions about insurance products available to them contact either their insurance broker or their state insurance regulator.

For more information or specific questions, please contact a KatzAbosch tax advisor at 410-828-CPAS (2727) or email jeaton@katzabosch.com.

prepared by James F. Eaton, III, CPA, MBA

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