Listen to the People

Mar 29, 2024
Women in a cast with her kids coloring on it.

Americans spoke up. And our leaders listened.

A new rule about short-term, limited duration health plans introduced Thursday by the U.S. Departments of Health and Human Services, Labor and the Treasury will not negatively impact supplemental benefit products which safeguard American families.

An earlier version of the rule would have disallowed many benefits currently available to policyholders of supplemental products. ACLI and its member companies led the effort to push back and get changes made to that unwise proposal that would have hurt consumers.

Supplemental benefits are used by families to pay for additional expenses arising from illness or injury that are not covered by major medical insurance. The benefits can be used by the policyholder in many ways, often to replenish their bank accounts after high deductibles and co-pays. They also can help pay for expenses like travel to specialty hospitals, household alterations, and other unexpected charges that arise when the unforeseen happens.  

60% of the supplemental benefit policyholders are married workers with dependents. Nearly half earn less than $49,000 a year. Hard-working Americans across the nation benefit from the peace of mind these benefits provide.

Not surprisingly, supplemental benefits are extremely popular. In a recent Morning Consult survey, 82% of women with children believe supplemental insurance benefits are valuable. A 2022 survey of supplemental insurance beneficiaries found an overall satisfaction rate between 92% and 99% depending on the product.

The agencies’ new rule includes important disclosures that will help educate consumers about supplemental benefit products as well as short-term, limited duration health plans. Moreover, it ensures that consumers will continue to have access to the vital financial protections that supplemental benefit products provide.

Cindy Goff

Cindy Goff is Vice President, Supplemental Benefits and Group Insurance at the American Council of Life Insurers (ACLI), where she develops and implements state and federal public policy positions and strategies to ensure access to innovative financial protection products. She has also served as Director of Health Policy for Aflac and VP of Product Policy at America’s Health Insurance Plans.