Group fixed-indemnity plans pose legal, tax issues 

August 27, 2024

Fixed-indemnity plans will have to display a new consumer notice beginning in 2025, but the final rule setting this requirement omits the agencies’ more sweeping proposals. This GRIST provides background information about group fixed-indemnity plans, details about the new consumer notice, an overview of proposals left out of the final rule, and a summary of IRS guidance identifying various fixed-indemnity designs (often paired with a wellness program) as improper “double dipping” schemes. The article also summarizes the rule’s impact on individual fixed-indemnity policies and short-term limited duration insurance.

Download the 13-page print-friendly PDF to read full details.