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New Research: Fixed Indemnity Plans Offer Great Value for Millions of Hardworking Americans

Press Release

Specified disease plans also deliver value for American businesses and employees.

Published Sep 11, 2023 • by AHIP

WASHINGTON, D.C. - (September 11, 2023) – Millions of American businesses and their employees value the additional protection offered by fixed indemnity and specified disease plans, which cover costs not covered by traditional major medical insurance. That’s the take-away from a new survey of health insurance providers who offer these plans to employers.

The survey was conducted by AHIP, American Council of Life Insurers (ACLI), and the Blue Cross Blue Shield Association (BCBSA). Nearly 40 insurance providers (39) responded to the survey, which was conducted between July 30 and September 7, 2023. The survey requested information regarding the number of currently in-force policies, as well as member feedback, during the 2022 benefit year.

For fixed indemnity coverage:

  • Nearly 8.2 million: Together, respondents covered nearly 8.2 million people in either group or individual fixed indemnity plans.
  • Nearly 80%: Nearly 80% of people covered received their coverage through an employer or purchased their individual plan at their worksite.
  • 0.0003%: From those covered, insurance providers received less than 2,500 complaints for the year – a rate of 0.0003%.

For specified disease plans:

  • More than 17.2 million: Together, respondents covered more than 17.2 million people in either group or individual plans.
  • Nearly 85%: Nearly 85% of people covered received their coverage through an employer or purchased their individual plan at their worksite.
  • 0.0002%: From those covered, insurance providers received about 3,500 complaints for the year – a rate of 0.0002%.

“This survey shows that millions of hardworking Americans and their families get a lot of value from fixed indemnity and specified disease plans,” said Jeanette Thornton, Executive Vice President of Policy & Strategy at AHIP. “These plans are important, providing American businesses with more choices to nurture a great workplace, and providing additional financial security and peace of mind for their employees.”

“The benefits from these plans reduce the financial strain on families caused by copays, deductibles, coinsurance and other out-of-pocket costs,” said Cindy Goff, ACLI Vice President, Supplemental Products & Group Benefits.

The survey was released in concert with AHIP’s comment letter on the on these supplemental health insurance products.

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