Supplemental health insurance policies, including fixed indemnity products, can fill gaps for consumers and can assist consumers who aren’t eligible for a special enrollment period or who need a bridge between when type of coverage ends and another begins.
The Centers for Medicare and Medicaid Services (CMS) issued a series of regulations to the Patient Protection and Affordable Care Act Affordable Care Act (ACA) which impacts supplemental health insurance products sold outside federal and state public health exchanges. One such provision affects sales of “fixed indemnity insurance” in an effort to discourage employers from offering the products such as hospital indemnity and critical illness in place of products that meet the minimum essential coverage standards. CMS regulations ended Mini-Med type policies and a recent federal “knock out” rule requiring that supplemental health policies be sold only to customers who have purchased major medical coverage. Transamerica redesigned and refiled our products to be compliant with new ACA rules.
As Congress and the Trump Administration consider options to repeal & replace, or make adjustments to ACA there are many possible outcomes that could affect the supplemental product market. Transamerica supports a change in the ACA which would remove restrictions on the sale of supplemental health insurance products.