Families USA Comment on Short-Term Limited Duration Insurance and Fixed Indemnity Plan Proposed Rules

Families USA commented in support of proposed federal rules to restrict the sale of short-term limited duration insurance to three months, to restrict what “fixed indemnity” plans can be excepted from requirements to offer comprehensive coverage, and to require better consumer warnings about the limitations of short-term and fixed indemnity plans.

Short term limited duration insurance often omits coverage for vital health care needs. It leads to people suffering terrible financial consequences and inadequate access to care.

Fixed indemnity plans pay people cash in the event of a particular health event. But recently, some such plans have also paid cash for some health services, blurring the distinction between health insurance and fixed indemnity plans without providing vital consumer protections. The proposed rule addresses this problem.

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