Blue Shield CA and Health Net CA Extend Non-Grandfathered Until March 31, 2014

California Insurance Commissioner Dave Jones announced this morning that he has received agreement from Blue Shield Life and health to extend current non-grandfathered coverage plans through March 31, 2014.

Blue Shield had already notified members that their non-grandfathered individual & family health plan PPO would terminate on December 31, 2013 and that they would be transferred or elect new coverage with a January 1, 2014 effective date.

As of today both Blue Shield and Health Net* have agreed to provide continuation of non-grandfathered coverage for the extra 3 months up to 3/31/14 (only PPO plans). This will allow individuals and families more time to shop for new coverage as well as allow time for the provider networks to mature and solidify.

*Health Net is only extending Health Net PPO plans that were purchased with effective dates on or after 10/1/13.  Any PPO plan including Farm Bureau and all HMO Health Net plans terminate on 12/31/13.  Only Health Net PPO plans with effective dates of 10/1/13 and after through the end of the year are extended.

Both Anthem Blue Cross and Kaiser Permanente told me this morning that as of right now they are terminating all non-grandfathered individual & family plans effective December 31, 2013 as previously announced.

It is also important to note that the requirement was from Covered California and agreed to by the health insurers participating inside of the exchange:


"I disagreed with health insurers' decision to cancel policies and Covered California's decision to require health insurers selling in the Exchange to cancel existing policies on December 31," Jones added. "Health insurers and Covered California are allowing small businesses to renew their existing plans past December 31 and should have allowed individuals and families to do the same. 

So, if you have a non-grandfathered Health Net** or Blue Shield Life & Health** (not Blue Shield of California)  PPO plan, you can keep it at the current premium until 3/31/14.  Health Net has cancelled new sales of HMO plans in 2013 and will terminate HMO plan effective 12/31/13.

Dave
www.davefluker.com


** Blue Shield Life & Health PPO plans are plan registered with the CA Dept of Insurance and only these plans are eligible for extension to 3/31/14

**Health Net PPO Plans (not including Farm Bureau) will be extended only for plans with an effective date of 10/1/13 or later.  Plans with prior effective dates back to 3/23/10 are terminating on 12/31/13.  

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