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ARTICLE · 03 JANUARY 2025

Court Vacates Fixed Indemnity Regulations

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On December 4, 2024, a federal court in the Eastern District of Texas issued a ruling vacating the notice requirement under the final regulations (the "Final Rule") on hospital and other fixed indemnity insurance.

United StatesEmployment and HR
Katie Bjornstad Amin
Katie Bjornstad Amin
Patrick D. O'Neil
Patrick D. O'Neil
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On December 4, 2024, a federal court in the Eastern District of Texas issued a ruling vacating the notice requirement under the final regulations (the "Final Rule") on hospital and other fixed indemnity insurance ("Fixed Indemnity") (ManhattanLife Insurance and Annuity Co. et al. v. U.S. Department of Health and Human Services et al., No. 6:24-cv-00178-JCB, Doc. 36 (E.D. Tex. Dec. 4, 2024). The Departments of Labor, Treasury, and Health and Human Services (the "Departments") issued the Final Rule on March 28, 2024. (See our previous alert on the Final Rule here).

Final Rule

The Final Rule created new notice requirements for Fixed Indemnity coverage to qualify as an excepted benefit in the group market and modified the existing notice requirement from 2014 regulations (the "2014 Notice Requirement") for Fixed Indemnity coverage to qualify as an excepted benefit in the individual market.

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