Trump Rescinds Biden-Era Supplemental Health Benefits Notice Requirement

January 29th, 2025

1 min read

2:15

In a significant policy shift, former President Trump has rescinded a Biden-era rule that required insurers to provide additional notices regarding supplemental health benefits. This change could have implications for insurance agents, particularly those selling supplemental health products like dental, vision, hospital indemnity, and critical illness plans.

What Was the Biden-Era Rule?

Under the previous administration, insurers offering supplemental health benefits were required to include a detailed notice clarifying that these policies were not a replacement for comprehensive health coverage. The goal was to ensure transparency, helping consumers differentiate between supplemental and primary health plans.

What’s Changing?

With the rollback of this requirement, insurers are no longer mandated to provide these notices. This means:

Less Regulatory Burden: Insurers and agents have fewer compliance-related disclosures to manage.
Potential for Misunderstanding: Without clear notices, some consumers might be less informed about the nature of supplemental policies.
More Flexibility in Marketing: Agents may have increased leeway in how they position and explain supplemental health products.

What Should Insurance Agents Do?

Even with this change, transparency and client education should remain top priorities. Here’s how agents can adapt:

Clearly Explain Coverage Differences: Ensure clients understand that supplemental policies enhance, rather than replace, primary health insurance.
Use Best Practices for Ethical Sales: Even without a mandated notice, provide clear disclosures to maintain trust and long-term client relationships.
Stay Updated on Compliance Changes: While this rule has been rescinded, state-level regulations may still apply. Keep up with any evolving legal requirements in your market.

Final Thoughts

The rollback of this notice requirement gives agents more flexibility but also places greater responsibility on them to ensure consumers make informed decisions. By continuing to prioritize education and ethical sales practices, agents can build stronger, lasting relationships with their clients while avoiding potential compliance risks.

Related: How to Market Dental Insurance

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