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Small Business Health Options Program (SHOP) FAQ

Guidance for FAQ regarding 834 Transaction and Termination Transaction

Issued by: Centers for Medicare & Medicaid Services (CMS)

Issue Date: October 17, 2014

Program Area: Small Business Health Options Program (SHOP)

Question: Will Federally-facilitated Small Business Health Options Program (FF-SHOP) issuers ever receive a termination transaction to remove a disabled adult/ward?

Answer: No, dependents classified as 'ward' on an employee's application will not be removed from coverage when they would otherwise age off a parent's plan. If a ward is classified as a child, step-child, or foster child on an employee's initial application, these dependents will be terminated when they reach the maximum child dependent age submitted by issuers on their business rules template.

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DISCLAIMER: The contents of this database lack the force and effect of law, except as authorized by law (including Medicare Advantage Rate Announcements and Advance Notices) or as specifically incorporated into a contract. The Department may not cite, use, or rely on any guidance that is not posted on the guidance repository, except to establish historical facts.