This week the Court of Appeals for District of Columbia affirmed a lower court’s earlier decision on litigation affecting the fixed indemnity health insurance. The ruling reaffirms that the Department of Health and Human Services (HHS) may not require consumers purchasing fixed indemnity health insurance policies to certify that they have other health insurance coverage that qualifies as under the provisions of the Affordable Care Act. The common term for these policies is “mini-med insurance”. While many, like this Consumer Reports writer, predicted the death of this type of insurance, the opposite actually happened. This type of coverage has become more popular since passage of the Affordable Care Act.
While these plans do not help an individual or company avoid penalties for non-compliance with Affordable Care Act, they may be a more attractive option to the millions who are exempt from the health care law’s requirements.
Earlier HHS had proposed that only individuals who have qualified plans (aka “Obamacare”) could buy these policies. The court seems to uphold the rights of individuals who avoid Obamacare for any reason and want to maintain their non-compliant health plan.
The courts seem to say that consumers can purchase any insurance they want and deal with the consequences later.