The Biden administration is trying to crack down on perceived abuses by employers that offer fixed indemnity coverage with characteristics of comprehensive medical coverage, but its proposal looks headed for a fight with the insurance industry.
The proposed rule—issued by the Internal Revenue Service, and the Departments of Health and Human Services and Labor—would also restrict sales of short-term, limited-duration insurance, and would clarify the tax treatment of fixed benefit payments under employer-provided accident and health plans. Comments are due by Sept. 11.
The proposal is “trying to prohibit employers from trying to cobble together fixed indemnity coverage ...
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