HHS May Kill Stand-alone Indemnity

[Post Quartermaster]

Time to sell that AFLAC stock???

Interesting article:

HHS may kill stand-alone indemnity | LifeHealthPro


From the article:

HHS wants carriers to sell individual limited-benefit health insurance products – "fixed indemnity insurance" – only to consumers who have "minimum essential coverage."

MEC is coverage consumers can use to get out of having to pay the new Patient Protection and Affordable Care Act penalty.

HHS proposed the rule in a draft regulation that could apply to individual hospital indemnity insurance, individual critical illness insurance and other individual supplemental health insurance products.

If a carrier tried to sell an indemnity product by itself, HHS would classify the product as major medical coverage, not as an "excepted benefit." The issuer would have to comply with PPACA underwriting standards that now apply to major medical, such as the requirement that the issuer sell the product on a guaranteed-issue basis.

 

[AllenChicago]

I posted it in the Individual Health Insurance forum yesterday to seek feedback, but apparently no one reads that forum any longer. Hopefully you'll have better luck, P.Q.!

 

[HealthGuy]

total Commie takeover comin here ridiculous

 

[SamIam]

They have been trying to do this for a long time. That being said if they do it I bet it will be for the next enrollment period.

 

[HealthGuy]

We are too far down the highway, but what gives our Govt authority to do any of this?

 

[AllenChicago]

9-22-2014

Regarding the May 2014 rule from HHS/CMS that says:

"In its final rule for exchange and insurance market standards for 2015 and beyond, the Centers for Medicare & Medicaid Services (CMS) requires fixed indemnity insurance to be sold only as a supplement to minimum essential coverage in order to qualify as an excepted benefit."

REF: CMS Issues Final Rule on Fixed Indemnity Insurance - HighRoads

Does this rule Prohibit carriers from selling Fixed Indemnity plans to people who do not have minimum essential coverage? The two carriers we spoke with today say that it does not. It will be business as usual for them on 1/1/2015..and business is booming.
ac

 

[Tkruger]

One major carrier we rep has stated that it will be pulling it's FI product effective 12-31-14. Also, another carrier whose sole bread and butter was FI products and the fact that they are entering the QHP arena it would stand to reason that post 12-31-14 FI won't be offered as a stand alone option, but can be offered as a supplemental product with a QHP.

Anyone else have thoughts on this?

 

[bluediamond]

I have several thoughts but I will try to keep it civil and not use foul language lol.

Like healthguy says it looks like our government is taking over any lines of health.

I used to sell quite a few of the fixed indemnity plans sometimes as an add on but mostly to people who could not afford health insurance otherwise. Since Oct 1, 2013 have not sold a one as add on or for that matter any other ancillary product to someone who receive's a subsidy. My subsidy people can barely afford their health insurance after the govt has paid their part of the premium. It looks as though our administration is trying it's best to put insurance agent's out of business. What's up next for them is to diddle with the life business.

 

[Yagents]

I would say that companies are reading the new guidance and running for the hills. I am so glad these products will be gone as stand alone vehicles, as they are incorrectly sold (most of the time), created tons of customer confusion, and were no good for the client if they wanted real protection.

We were notified that Assurant Health Access is pulling that product at end of year.

And in post 227, Horselady said that Freedom Life is also pulling their indemnity product
http://www.insurance-forums.net/for...um/anyone-heard-ushealth-advisors-t33531.html

BUH BYE

 

[Tkruger]

That was the company I was referring to