The State of Hawaii will continue to allow "transitional" or "grandmother" plans to be renewed until December 31, 2018, according to Hawaii Insurance Commissioner Gordon Ito. This extension will further facilitate a smooth shift from transitional coverage to ACA-compliant coverage in the individual and small business markets.

 

This is not the first time that the State of Hawaii has extended the use of "grandmother" plans for individuals or small businesses.  Since 2014, Hawaii has permitted individual and small group policies to continue their existing plans.  The newest extension will allow issuers that have renewed "grandmother" policies since 2014 to renew coverage for policy years starting on or before October 1, 2018, provided that coverage does not extend beyond December 31, 2018.  Whether further extensions beyond that date will be allowed remains to be seen.