ManhattanLife Insurance and Annuity Company et al. v. U.S. Department of Health and Human Services et al.

Why this Matters:

The plaintiffs allege that a federal regulation concerning notice requirements for fixed indemnity policies exceeds the statutory authority of the agencies who finalized the rule and violates the Administrative Procedure Act. As fixed indemnity policies do not have to comply with the Affordable Care Act’s market reforms, insurers can charge higher premiums based on health status, exclude coverage for preexisting conditions, impose annual or lifetime limits, opt not to cover entire categories of benefits, or rescind coverage altogether under such policies.

Potential Impact:

Without adequate disclosure and notice requirements related to fixed indemnity policies, consumers seeking comprehensive coverage enrolling in such policies could unintentionally be exposed to significant financial liability.