Iowa Insurance Commissioner Bulletin: November 27, 2013

(2013) Iowa Insurance Commissioner Bulletin: November 27, 2013. Insurance Division (Commerce)

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Abstract

On January 24, 2013, in a published Frequently Asked Questions (FAQ) document (Affordable Care Act Implementation, FAQ Part XI, available online at http://www.cms.gov/CCIIO/Resources/Fact- Sheets-and-FAQs/) the U.S. Department of Labor, the U.S. Department of Health and Human Services, and the U.S. Department of the Treasury (hereinafter collectively called “the federal departments) states that hospital indemnity or other fixed indemnity insurance policies under a group health plan provides excepted benefits only when the benefits are paid as a fixed dollar amount per day or other period of hospitalization or illness regardless of the amount of expenses incurred, among other requirements. Generally, most state insurance regulators have not required strict adherence to the fixed dollar amount per period as now required in the above referenced FAQ because that requirement was not part of 42 USC § 300gg-21 as enacted under the federal Health Insurance Portability and Accountability Act of 1996 (HIPAA). However, the requirement is contained in the final rule