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Americans Agree: Fixed Indemnity Plans Are Important for Financial Security and Peace of Mind


Published Aug 14, 2023 • by AHIP

Washington, D.C. – (August 14, 2023) – Every American deserves access to affordable, comprehensive, high-quality coverage and care. But the costs associated with getting sick or recovering from an injury continue to escalate year after year.

Fixed indemnity health insurance provides Americans with added financial protection, helping cover out-of-pocket costs for specified services and other expenses during a time of serious illness, or following an injury.

These plans are not major medical coverage – they complement major medical coverage. Fixed indemnity plans pay a pre-determined, fixed amount directly to a patient based on a triggering medical event, such as a visit to the doctor or hospital stay. All supplemental products sold by AHIP members have been rigorously vetted and approved by the Departments of Insurance in the states where they are sold.

Agents and brokers who offer these plans are licensed, knowledgeable experts who are committed to helping hardworking Americans find health insurance plans that are right for them. But recent reports have spotlighted a few bad actors and dishonest third parties who are providing misleading or outright false information about these products and their role as a supplement to comprehensive major medical insurance.

AHIP condemns this fraudulent behavior, and we are committed to solutions that protect Americans from improper marketing. But we shouldn’t throw the baby out with the bath water. Americans agree that fixed indemnity plans are an important choice that protects their financial security and peace of mind.

  • 92% of Americans who have fixed indemnity plans are satisfied with their coverage.
  • 90% say that these plans help pay for needed medical expenses, and they ease concerns about their financial security.

Undermining Fixed Indemnity Plans

A recent proposed rule from the Departments of Health and Human Services, Labor, and Treasury would undermine the value of fixed indemnity coverage, limiting its availability to the very Americans who need it the most. The proposed rule would:

  • Make patients pay higher taxes if they are sick or injured – making them pay more at the most vulnerable time in their lives, when they need financial protections and security most.
  • Set up new, costly requirements that would mean that Americans would pay more, for fewer choices, that offer less value.
  • Ask for comment on applying these harmful structural changes to specified disease products, as well as to fixed indemnity and hospital indemnity products.

While we support clear language that fully describes what these products do and do not cover, we do not support changes that would make Americans pay more when they are sick. That’s not financial security.  

Americans deserve the personal choice, control, and financial security that fixed indemnity plans offer. Let’s work together to protect fixed indemnity plans for the Americans who need them.

Click here and here for more information on fixed indemnity plans.

About AHIP

AHIP is the national association whose members provide health care coverage, services, and solutions to hundreds of millions of Americans every day. We are committed to market-based solutions and public-private partnerships that make health care better and coverage more affordable and accessible for everyone.