AASA Joins ASBO and NSBA in Letter on Health Insurance

September 12, 2023

AASA joined ASBO and NSBA in a joint letter responding to a recent proposal from HHS, DOL and Treasury. The proposal would modify the definition of short-term, limited-duration insurance (STLDI) and modify the conditions for hospital indemnity or other fixed indemnity insurance to be considered an excepted benefit. It also solicits comments regarding specified disease excepted benefits coverage and comments regarding level-funded plan arrangements. Lastly, it includes a proposal from the Department of the Treasury (Treasury) and the Internal Revenue Service (IRS) that would clarify the tax treatment of certain benefit payments in fixed amounts received under employer-provided accident and health plans. 

In putting in place these valuable beneficiary protections, we urge the Departments to strike the appropriate balance and ensure the least financial hardship and impact on beneficiaries. Read our full letter here