From Senate Bill 99-069

Small group carriers no longer have to offer the guaranteed plans to business groups of one (BGO) on a year-round basis. A BGO can apply for coverage throughout the year and go through medical underwriting. However, if underwriting denies coverage for medical reasons, the BGO will only be guaranteed issue a Basic or Standard health plan during the 31 days following the birth date of the person qualifying as a BGO. This 31days becomes the open enrollment period. The exceptions to this open enrollment period are:

1. A person qualifying as a business group of one exhausts state or federal continuation coverage;
2. The date a person initially meets the requirement of section 10-16-102(6) (one year after starting the business) and whose birth date is more than thirty one days after so doing; or
3. A person qualifying as a business group of one involuntarily loses other creditable coverage.

Instead of signing an affidavit stating that you own a business, carriers may now require the BGO to submit any of the following:

1. Employment-related tax and withholding information, including, but not limited to, a federal internal revenue service form 1099: and
2. Relevant portions of federal and state tax returns or a certification by an attorney or certified public accountant that federal and state tax returns have been filed as a business.

Several carriers are requiring the above information from BGOs upon renewal of in-force group plans. If a BGO fails to submit the required forms, carriers may terminate the group policy