Admin Limits Short-Term Plans, Punts On Fixed Indemnity

The Biden administration is finalizing a rule that restricts the duration of short-term health plans to no more than four months, including renewals, in a long-awaited policy shift that overturns a Trump-era rule allowing those plans to run for up to three years. The administration, however, punted on proposed changes to the definition and the tax treatment of fixed indemnity products, which many opponents argued went beyond the administration's authority and would spur immediate lawsuit if they were finalized. In...