Insurer Groups Sound Off on Proposed Changes to Fixed Indemnity, Short-Term Plans

Health insurer trade groups agree that it’s a good idea to reinstate strict limits on short-term, limited-duration insurance (STLDI) plans, according to their official comments on a proposed rule from the Biden administration. But their views diverge on the proposed regulation’s treatment of fixed indemnity insurance and other supplemental coverage.

The proposed rule in question — issued on July 7 by HHS and the Labor and Treasury departments — answered a growing chorus of calls to crack down on STLDI amid concerns that many consumers mistake them for comprehensive coverage. Meant to bridge a gap in insurance coverage, STLDI plans are exempt from the Affordable Care Act’s consumer protections, such as the ban on charging higher rates for sicker people and the requirement that plans must cover a prescribed set of “essential benefits.”

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