On Jan. 19, 2021, the Department of Health and Human Services (HHS) extended an existing transition policy for certain health plans that do not comply with the Affordable Care Act (ACA) for an additional year, to policy years beginning on or before Oct. 1, 2022. However, all noncompliant plans renewed under this extended transition policy must come into compliance by Jan. 1, 2023.

In states that allow it, health insurance issuers have the option of renewing current policies for current enrollees without adopting all of the ACA’s market reforms that took effect in 2014. Plans renewed under this transition policy are often called “grandmothered” plans.

Originally announced in 2013, the transition policy has already been extended several times.

Individuals and small businesses may be able to keep their non-ACA compliant coverage through 2022, depending on the plan or policy year.

HHS Extends Transition Policy for Non-ACA Compliant Health Plans