The Department of Health and Human Services announced Thursdaythe new health reform law will end limited medical plans - ormini-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 languagethat their plan offers "extremely limited medical benefits" andwill need to direct consumers to a government website (www.healthcare.gov) for moreinformation about coverage options.

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

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

"The Affordable Care Act is giving consumers more control overtheir health care by providing them with information about theirhealth insurance options," said HHS Secretary Kathleen Sebelius ina statement. "Now, we're taking an unprecedented step to ensureconsumers are informed when they purchase policies that offerlimited coverage."

HHS says the new guidance ensures that consumers in plans withlow annual limits are notified of the quality of their health planso that they can make informed decisions about whether mini-medcoverage is right for them.

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

Waivers only last for one year and are only available if theplan certifies that a waiver is necessary to prevent either a largeincrease in premiums or a significant decrease in access tocoverage.

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

Limited medical benefit plans fall into two basic types ofcoverage: coinsurance and indemnity-based. Fixed indemnity plansthat are filed as supplemental and don't represent themselves asgroup health insurance plans are not subject to newregulations.