The Departments of Treasury, Labor and Health and Human Services have proposed a rule creating a new category of “limited excepted benefits” for fertility coverage under the Employee Retirement Income Security Act, the Internal Revenue Code, and the Public Health Service Act. If finalized, employers could offer certain fertility benefits as standalone coverage—similar to dental or vision plans—largely exempt from many federal group health plan requirements. The proposal is intended to reduce regulatory barriers and expand employer flexibility in offering infertility-related services, including diagnostics, medications, and treatments provided by licensed professionals. Coverage would be capped at a $120,000 lifetime limit per participant, adjusted for inflation after 2027. However, the proposal focuses primarily on medically diagnosed infertility and doesn’t address donor-assisted reproduction, surrogacy, or fertility services for LGBTQ+ individuals. Comments on the proposed rule are due July 13, 2026.