Glossary

Excepted Benefits

There are several types of excepted benefits.

• Certain benefits are always treated as excepted benefits because they are not considered health coverage, such as:
  • Accident Only
  • Disability Income Insurance
  • Workers’ Compensation
• Other benefits are treated as excepted benefits if they are offered separately or are not an integral part of the plan, including:
  • Limited-Scope Dental or Vision
  • Long-Term Care Benefits
• Moreover, other benefits are treated as excepted benefits if they are offered separately and not coordinated with benefits under another group health plan, including:
  • Coverage for a Specific Disease
  • Hospital Indemnity or Other Fixed Indemnity
• Finally, other benefits are treated as excepted benefits if they are offered as a separate insurance policy and supplemental to Medicare, Armed Forces health care coverage, or (in very limited circumstances) group health plan coverage.

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