The Department of Health and Human Services is proposing a rule that would, if implemented, guarantee that even more Americans who like their health insurance plans cannot keep them.
Fixed indemnity plans, which pay insured customers a set amount towards medical expenses and are often cost-effective relative to more comprehensive health insurance, are popular forms of coverage, and potentially becoming more popular in the wake of Obamacare.
Health insurance industry representatives say that fixed indemnity plans have been attracting more interest as many Americans look for a way to mitigate against the high deductibles applicable to many insurance policies available on the Obamacare exchanges (fixed indemnity plans are not Obamacare-compliant, but they are seen by some consumers as pairing nicely with Obamacare-compliant insurance).
But the HHS rule would effectively ban them, overriding regulation that has up until now been the preserve of state governments. The rule would state that these plans can only be sold to consumers where that consumer also purchases Obamacare-compliant insurance.