New “junk insurance” regs could end some voluntary benefits plans, industry insiders say

Photo: Vitalii Vodolazskyi/stock.adobe.com

A Biden Administration initiative to regulate “junk insurance” will have an impact on the brokerage industry and employee benefits, as some popular voluntary benefit programs are covered by the language of the proposed changes. However, industry insiders say there is a long way to go before the regulations are finalized, and that they hope to make the case that the regulations should be adjusted to prevent doing more harm than good.

As with many high-profile proposals, “junk insurance” is a politically charged concept, designed to play on Americans’ dissatisfaction with a complicated and expensive health care system. The current administration has clearly decided that the “Bidenomics” brand should include a more consumer-friendly stance that attempts to cut down on things like high fees and unexpected bills.