Tri-agency STLDI final rules remove supplemental products provisions

You may recall we previously communicated information about a rule proposed by the Biden administration last July that made significant problematic changes to the structure and taxation of Hospital Indemnity and other fixed indemnity products.

Our company immediately mobilized after the rule was proposed. We engaged in direct advocacy and coordinated with our trade associations and industry peers. We met with state and federal legislators and regulators to discuss the adverse impact to millions of Americans if the changes to our financial protection products were included. This effort included key outreach to the White House and federal agencies by the head of Unum and Colonial Life’s voluntary benefits, Tim Arnold.

The final rule was released on March 28, and we are pleased to report the provisions impacting supplemental product structure and taxation were removed.

While this was a significant development, the final rule did include an increased disclosure requirement for fixed indemnity products, so our company will continue to proactively engage with legislators and regulators to educate them on the importance of supplemental products. You can count on hearing from us should there be any consequential developments. For now, we are pleased to pass along this good news and will continue to offer these financial protection products, which millions of Americans value.

The Unum Government Affairs team is happy to discuss these or other policy topics. Contact your Unum sales representative to facilitate a conversation.