--- title: New Rule for Fixed-Indemnity, Specific-Disease or Illness Policies description: Proposed rule on short, limited-duration insurance, independent noncoordinated excepted benefits, level-funded plans, taxation of accidents, and insurance. image: https://blog.threadhcm.com/hubfs/Imported_Blog_Media/eAlerts-thumb3-1-300x183.jpg --- - - - - [Solutions](https://threadhcm.com/solutions/) - [Applicant Tracking](https://threadhcm.com/applicant-tracking/) - [Human Resources](https://threadhcm.com/human-resources/) - [Payroll](https://threadhcm.com/payroll/) - [Time](https://threadhcm.com/time/) - [Benefits Enrollment](https://threadhcm.com/benefits/) - [ACA Compliance](https://threadhcm.com/aca-compliance/) - [Employee Experience](https://threadhcm.com/employee-experience/) - [Learning Management](https://threadhcm.com/learning-management-system/) - [HR Consulting](https://threadhcm.com/hr-consulting/) - Resources - [Daily Thread Blog](https://blog.threadhcm.com/) - [Free Webinars](https://threadhcm.com/webinars/) - [isolved Releases](https://blog.threadhcm.com/tag/isolved-releases) - [HR eAlerts](https://blog.threadhcm.com/tag/hr-ealerts) - [Infographics](https://blog.threadhcm.com/tag/infographics) - [Press Releases](https://blog.threadhcm.com/tag/press-release) - [![Thread HCM](https://blog.threadhcm.com/hs-fs/hubfs/Thread_February2020%20Theme/Images/thread-logo-green.png?width=100&height=100&name=thread-logo-green.png "Thread HCM")](https://threadhcm.com) - [Your Happiness](https://threadhcm.com/measuring-your-happiness/) - About - [Our Story](https://threadhcm.com/our-story/) - [Our Culture](https://threadhcm.com/our-culture/) - [Our Team](https://threadhcm.com/team/) - [Associations & More](https://threadhcm.com/associations/) - Contact - [Get In Touch](https://threadhcm.com/contact/) - [Careers at Thread](https://threadhcm.com/careers/) - [Broker or advisor?](https://threadhcm.com/partners/) - [Client Referrals](https://offers.threadhcm.com/refer-a-friend) - [Thread Office Closures](https://offers.threadhcm.com/thread-closures) - [![Demo](https://no-cache.hubspot.com/cta/default/2515809/a2b12e0e-ed5a-400b-912c-d234fd8519d8.png)](https://cta-redirect.hubspot.com/cta/redirect/2515809/a2b12e0e-ed5a-400b-912c-d234fd8519d8) - *search* *Press enter to begin your search* [![Thread HCM](https://blog.threadhcm.com/hs-fs/hubfs/Thread_February2020%20Theme/Images/thread-logo-green.png?width=250&height=250&name=thread-logo-green.png "Thread HCM")](https://threadhcm.com/) - Solutions - [Applicant Tracking](https://threadhcm.com/applicant-tracking/) - [Human Resources](https://threadhcm.com/human-resources/) - [Payroll](https://threadhcm.com/payroll/) - [Time](https://threadhcm.com/time/) - [Benefits Enrollment](https://threadhcm.com/benefits/) - [ACA Compliance](https://threadhcm.com/aca-compliance/) - [Learn + Learn Pro LMS](https://threadhcm.com/learning-management-system/) - [Consulting](https://threadhcm.com/hr-consulting/) - About - [Our Story](https://threadhcm.com/our-story/) - [Our Culture](https://threadhcm.com/our-culture/) - [Our Team](https://threadhcm.com/team/) - Resources - [Daily Thread Blog](https://blog.threadhcm.com/) - [Infographics](https://blog.threadhcm.com/tag/infographics) - [Press Releases](https://blog.threadhcm.com/tag/press-release) - [iSolved Releases](https://blog.threadhcm.com/tag/isolved-releases) - [Webinars – Live & On Demand](https://threadhcm.com/webinars/) - Contact - [Get In Touch](https://threadhcm.com/contact/) - [Careers at Thread](https://threadhcm.com/careers/) - [Broker or advisor?](https://threadhcm.com/partners/) - [Client Referrals](https://offers.threadhcm.com/refer-a-friend) - [Thread Office Closures](https://offers.threadhcm.com/thread-closures) - [Demo](https://threadhcm.com/demo/) - - - [HR eAlerts](https://blog.threadhcm.com/tag/hr-ealerts) # New Rule for Fixed-Indemnity, Specific-Disease or Illness Policies By [HR Pros at HR Support Center](https://blog.threadhcm.com/author/hr-pros-at-hr-support-center) April 3, 2024 ## The Federal Departments Publish a New Rule for Fixed-Indemnity and Specific-Disease or Illness Policies **April 3, 2024** The IRS, the Department of the Treasury, the Employee Benefits Security Administration, the Department of Labor, the Centers for Medicare & Medicaid Services, and the Department of Health and Human Services (collectively the federal departments) published a proposed rule on July 12, 2023, addressing short-term limited-duration insurance, independent noncoordinated excepted benefits coverage, level-funded plan arrangements, and the tax treatment of certain accident and health insurance. The [final rule](https://www.govinfo.gov/content/pkg/FR-2024-04-03/pdf/2024-06551.pdf), published on April 3, 2024, addressed only short-term limited-duration insurance (not discussed here as they are typically not in the group market) and the independent noncoordinated excepted benefits, specifically fixed-indemnity and specific-disease or illness policies. Level-funded plan arrangements and tax treatment were not addressed but may be in future rules. The final rule includes a new notification requirement on the first page of any marketing materials and enrollment (or re-enrollment) applications for fixed-indemnity and specific-disease or illness policies issued (or renewed) on or after January 1, 2025. The new notice is intended to inform individuals that the policy does not provide comprehensive benefits. A sample model notice is included in the rule. However, the federal departments plan to create a notice that will not require modification or customization. Employers must ensure the notice requirement is met when reviewing marketing and enrollment materials from the issuing insurer. For more information, refer to our [GHP: Excepted Benefits](https://apps.trustmineral.com/hr-compliance/laws/1qbbV0kpClKkNnURLkBmp5/details) page. ### Stop worrying about labor laws, and let Thread take the administrative work out of HR. 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