Virginia HEALTH INSURANCE Consumer’s Guide Prepared by State CORPORatiON COMMISSION BUREAU OF INSURANCE www.scc.virginia.gov/boi Virginia HEALTH INSURANCE Consumer’s Guide Prepared by Commonwealth of Virginia State Corporation Commission Bureau of Insurance This Consumer’s Guide should be used for educational Post Office Box 1157 purposes only. Nothing in this Guide is intended Richmond, Virginia 23218 to be an opinion, legal or otherwise, of the State Web Site – www.scc.virginia.gov/boi Corporation Commission, nor should it be construed Email Address – [email protected] as an endorsement of any product, service, person or organization mentioned in this Guide. 2015 SCC: Virginia Health Insurance Consumer’s Guide i ABOUT THIS GUIDE Health insurance has undergone many changes in recent years, ranging from requirements that impact benefits, to the way many people purchase their health insurance coverage. Many of these changes resulted from the passage of the federal Patient Protection and Affordable Care Act (Affordable Care Act or ACA) along with conforming Virginia state insurance laws. The Bureau of Insurance (Bureau) developed this Guide to assist Virginia’s consumers in evaluating and understanding their health insurance coverage options in light of these many changes. This Guide includes a brief overview of many of the significant recent benefit changes as well as an explanation of the federal Health Insurance Marketplace (Marketplace) and the Small Employer Health Options Marketplace (SHOP), both of which are sometimes referred to as the “Exchange.” It also includes a glossary of the bolded terms used in this Guide. This Guide also includes contact information and additional resources that are helpful in evaluating and understanding your health insurance options. This Guide is comprised of the following major sections: Section Page An informed consumer is always in a better position to make a wise decision 1. RECENT HEALTH INSURANCE LEGISLATION ............ 1 about his insurance needs. Knowledge is your best policy. 2. SHOPPING FOR HEALTH INSURANCE ........................ 3 3. HEALTH INSURANCE COVERAGE INFORMATION .... 9 4. GRANDFATHERED PLANS ............................................13 5. CONSUMER ASSISTANCE ............................................15 6. GLOSSARY OF TERMS ..................................................17 The Bureau of Insurance is here to help you with any questions you may have about health insurance coverage. Please do not hesitate to call our Consumer Services Section (see Important Contact Information, Page iv) and ask questions. ii About this Guide SCC: Virginia Health Insurance Consumer’s Guide iii IAMPORT NT CONTACT INFORMATION OTHER IMPORTANT CONTACT INFORMATION (HOW TO REACH US) (Entities Not Affiliated with the State Corporation Commission) STATE CORPORATION COMMISSION BUREAU of INSURANCE HEALTH INSURANCE MARKETPLACE Physical Deliveries/Visits: Mailing address: for Virginia Life & Health Division Life & Health Division (Website) www.HealthCare.gov 1300 E. Main Street P. O. Box 1157 (Toll-Free) 1-800-318-2596 Richmond, VA 23219 Richmond, VA 23218 (TTY) 1-855-889-4325 (Fax) (804) 371-9944 SMALL BUSINESS HEALTH OPTIONS MARKETPLACE (SHOP) Web site Email Address for Virginia www.scc.virginia.gov/boi [email protected] (Website) www.healthcare.gov/small-businesses (Toll-Free) 1-800-706-7893 LIFE & HEALTH DIVISION CONSUMER SERVICES SECTION (TTY) 711 (Toll-Free) 1-877-310-6560 (In Richmond) (804) 371-9691 UNITED STATES DEPARTMENT OF LABOR (Website) www.dol.gov/ebsa/healthreform TDD USERS ONLY (Toll-Free) 1-866-444-3272 Telecommunications Device for the Deaf (804) 371-9206 RESOURCE to FIND LOCAL MARKETPLACE ASSISTERS (Website) https://LocalHelp.HealthCare.gov ASSISTANCE for NON-ENGLISH SPEAKING CONSUMERS (Toll-Free) 1-800-318-2596 (804) 371-9741 (TTY) 1-855-889-4325 (804) 371-9691 (Toll-Free) 1-877-310-6560 AFFORDABLE CARE ACT HOTLINE U.S. Center for Consumer Information and Insurance Oversight OFFICE of the MANAGED CARE OMBUDSMAN (Toll-Free) 1-888-393-2789 (Toll-Free) 1-877-310-6560 (In Richmond) (804) 371-9032 ADDITIONAL RESOURCES FOR SMALL EMPLOYERS: (Email) [email protected] IRS Affordable Care Act News Releases, Multimedia and Legal Guidance: www.irs.gov/uac/Affordable-Care-Act-of-2010-News-Releases-Multimedia-and-Legal- OFFICE of INDEPENDENT EXTERNAL REVIEW Guidance (Toll-Free) 1-877-310-6560 (In Richmond) 371-9913 U.S. Department of Labor Patient Protection and Affordable Care Act Information: (Fax) (804) 371-9915 www.dol.gov/ebsa/healthreform (Email) [email protected] U.S. Small Business Administration Health Care Reform Page INSURANCE OUTREACH www.sba.gov/healthcare (Toll-Free) 1-877-310-6560 (In Richmond) (804) 371-9092 (Email) L&[email protected] iv Important Contact Information SCC: Virginia Health Insurance Consumer’s Guide v In recent years, a number of significant changes were made in the requirements that apply to health insurance... 1. 1. RECENT HEALTH INSURANCE LEGISLATION In recent years, a number of significant changes were made in the requirements that apply to health insurance, most of which resulted from the passage of the Affordable Care Act or ACA, which became federal law on March 23, 2010. Several of the ACA’s provisions relating to health insurance coverage became effective as health carriers issued new plans or policies or renewed existing plans or policies on or after September 23, 2010. Additional provisions of the ACA became effective on January 1, 2014. In Virginia, a number of state laws were revised or enacted to conform Virginia law to the health insurance coverage requirements in the ACA. Generally, the provisions of the laws implementing these changes apply to all health benefit plans and policies, but there are some exceptions. For example, some requirements either do not apply or apply differently to plans issued in the large group market. There are also a number of requirements of the law that do not apply to grandfathered plans (see Grandfathered Plans, Page 13). You should contact your employer, your health insurer, and/or your insurance agent if you have questions about the type of plan you have and the requirements that may apply to it. SCC: Virginia Health Insurance Consumer’s Guide 1 Generally, you can only purchase individual health insurance coverage during an annual Open Enrollment period. 1.2. 2. SHOPPING FOR HEALTH INSURANCE Beginning in 2014, individuals and small employers and their employees now have two options with respect to their health insurance coverage purchases, and there are a number of tools, resources and qualified individuals available to assist people with their purchases, (see Consumer Assistance, Page 15): 1. Coverage may be purchased through a marketplace through which plan offerings and premium rates may be viewed and compared. For individual health insurance coverage, the federal marketplace that operates for Virginia is referred to as the Health Insurance Marketplace (see The Health Insurance Marketplace (Marketplace), Page 3). For plans offered in the small group market, the federal marketplace that operates for Virginia is referred to as the SHOP Marketplace (see The Small Business Health Options Program Marketplace (SHOP), Page 4). 2. Individuals, small employers, and employees of small employers can also purchase health insurance coverage outside of the Marketplace or SHOP, similar to the way it has been purchased in the past. Health carriers that offer plans in the Marketplace or SHOP will charge the same premium when the same health benefit plan is sold inside and outside of the Marketplace or SHOP. The Health Insurance Marketplace (Marketplace) The Marketplace is the name of the federal health insurance marketplace through which individuals in Virginia may shop for health insurance. By accessing the Marketplace online, you can view the various plans and their associated premium rates offered by a number of private insurers. Through the Marketplace, lower- income individuals can receive help to lower out-of-pocket costs with reduced cost-sharing (deductibles, coinsurance or copayments). They also may be eligible to receive premium tax credits for a plan purchased inside the Marketplace. Consumers may purchase plans inside or outside the Marketplace (see Open & Special Enrollment Periods, Page 6). However, premium tax credits and cost- sharing reductions are not available for plans purchased outside the Marketplace. To learn more, or to apply for coverage through the Marketplace, see the Contact Information section on Page v of this Guide. SCC: Virginia Health Insurance Consumer’s Guide 3 2. 2. The Small Business Health Options Program Marketplace (SHOP) important to you in a health care plan, including premium and cost sharing costs; the inclusion within the plan’s network of doctors, facilities and other healthcare The ACA created the Small Business Health Options Program Marketplace (SHOP) providers; and specific coverages that are particularly important to you. where small employers who want to offer coverage to their employees can shop for plans. In Virginia, the federal exchange is called the SHOP. Certain small Here are some questions to consider when comparing plans: employers may be eligible for tax credits for plans purchased on the SHOP. Rules • Will I be covered if I need medical care while traveling? Are out-of-state or out-of- pertaining to small employers inside or outside the SHOP include the following: network providers covered?