Revised Regulations on Value-Added Products and Services Effective 07/01/23
The state of Indiana has revised regulations on rebates and providing value-added products or services. Effective July 1, insurance producers, affiliates or third-party representatives can offer or provide for free or for reduced costs, value-added products or services that are at least tangentially related to an insurance policy or the administration of an insurance policy without violating rebate laws.
The value-added product or services must be offered in a manner that is not unfairly discriminatory and available based on documented, objective criteria. These objective criteria must be made available for inspection by the insurance commissioner within 30 days after a request for inspection.
The products and services that can be offered include but are not limited to:
- Loss control, including wellness programs;
- Claim filing assistance;
- Administration of the continuation of health benefits requirements of the Consolidated Omnibus Budget Reconciliation Act (COBRA);
- Compliance with the requirements of the Health Insurance Portability and Accountability Act (HIPAA);
- Risk management or analysis;
- Regulatory and legislative updates;
- Group policy administration;
- Payroll, accounting, and tax services;
- Legal and human resources; and
- Referrals to third-party service providers that offer discounted rates.
Value-added products or services will not be considered rebates as long as the products or services provided are primarily intended to educate about the risk, severity or frequency of loss to consumers lives, health or property; or are designed to enhance the health, financial wellness or safety of consumers.
The product or service provided must include contact information for the purpose of ensuring that the consumer is assisted with questions concerning the product or service.