Agencies Propose Overhaul of Fixed Indemnity Plan Rules

Summary

To further President Biden's goal of strengthening the Affordable Care Act (ACA), the departments of Labor, Treasury, and Health and Human Services recently issued an array of proposed rules. This article focuses on the proposals most pertinent to employers — specifically, proposed changes to fixed-indemnity excepted-benefit coverage and the tax treatment of employer-provided accident and health plans. If finalized, the changes may require many employers to modify certain plan designs and administrative processes. In particular, employers could no longer offer a preventive services plan and a group hospital fixed-indemnity plan to the same group of employees.