“We had to issue this new ruling because Americans can’t read!” explained the high ranking government official during Happy Hour at the Off The Record watering hole.
“But if that’s true, how do you expect them to read the new rule?” replied the bartender.
“Braille!” boomed the high, and getting higher, government official.
“Fixed indemnity insurance is not health insurance? Really?” slurred the regular. “Insurance is insurance isn’t it?”
“Bet you a beer it isn’t!” panted the now teetering government official as he gazed longingly at the picture above the bar. “She’s beautiful, isn’t she!”
April 09, 2024
The DOL, HHS and Treasury Department (the “Departments”) recently issued final rules regarding short-term, limited-duration insurance and fixed-indemnity insurance. The final rules provide that, for plan years beginning on or after January 1, 2025, fixed-indemnity insurance in the group market must provide a notice explaining that it is not health insurance. The notice must feature the limitations of the coverage to ensure consumers are not mistakenly purchasing fixed-indemnity coverage as an alternative to more comprehensive coverage.
- The notice must be provided to participants in any marketing, enrollment or reenrollment materials at or prior to enrollment and re-enrollment.
- The notice must be in at least 14-point font.
The proposed rules contained a number of changes that would have significantly impacted the fixed-indemnity insurance coverages currently being offered by employers to their employees. However, the final rules did not include these changes, which the Departments intend to address in future rulemaking.
The final rules and model notice are available here.
