The Department of Health and Human Services announced Thursday the new health reform law will end limited medical plans - or mini-meds - in 2014. The department also released new rules for how these plans will be issued going forward.

According to HHS, carriers offering mini-meds will have to let consumers know in plain language that their plan offers "extremely limited medical benefits" and will need to direct consumers to a government website (www.healthcare.gov) for more information about coverage options.

Carriers also will no longer be allowed to sell new policies except under "very limited circumstances" -only insurers that have obtained a waiver of the annual limit requirement can sell policies to new employers and individuals.

HHS says the new health reform law will "end limited-benefit health insurance plans" in 2014 and will then provide Americans with affordable, high-quality coverage options.

"The Affordable Care Act is giving consumers more control over their health care by providing them with information about their health insurance options," said HHS Secretary Kathleen Sebelius in a statement. "Now, we're taking an unprecedented step to ensure consumers are informed when they purchase policies that offer limited coverage."

HHS says the new guidance ensures that consumers in plans with low annual limits are notified of the quality of their health plan so that they can make informed decisions about whether mini-med coverage is right for them.

The department's issued more than 200 waivers for plans that do not meet annual limits requirements under federal health care reform. According to HHS, these were issued as protection for the millions of workers who have limited options for their health coverage.

Waivers only last for one year and are only available if the plan certifies that a waiver is necessary to prevent either a large increase in premiums or a significant decrease in access to coverage.

The new federal rules require health plans with waivers to tell consumers if their health care coverage is subject to an annual dollar limit lower than what is required under the law. Specifically, the notice must include the dollar amount of the annual limit along with a description of the plan benefits to which the limit applies.

Limited medical benefit plans fall into two basic types of coverage: coinsurance and indemnity-based. Fixed indemnity plans that are filed as supplemental and don't represent themselves as group health insurance plans are not subject to new regulations.

Instant Insights /

Health reform will kill off mini-meds in 2014

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