Legislation proposed by U.S. Sen. Ron Wyden (D-OR), and U.S. Reps. Deborah Ross (D-NC) and Kathy Caster (D-FL) would create criminal penalties for health insurance brokers who change Americans’ Affordable Care Act plan without their consent.
The bill, the Insurance Fraud Accountability Act, would hold insurance brokers and marketers responsible for profiting off deceptive marketing schemes into health care insurance plans. According to the Congressmembers, rogue brokers are using misleading marketing tactics, including touting free government subsidies, to target low-income individuals and enroll them into health insurance plans without their permission. The law makers said in many cases, brokers often switch customers’ plans without informing them or getting their consent, leaving them with uncovered medical expenses, loss of coverage, disruptions in care and sometimes even tax liabilities.
The law makers said the bicameral legislation will combat healthcare fraud by going after the fraudsters, and not by cutting tax credits for health insurance.
“The best way to fight fraud is to go after fraudsters, not punish Americans trying to get affordable health care,” Wyden said. “Working families need to be able to confidently purchase quality, affordable health insurance through honest brokers. Bad actors who are undermining that confidence must be held criminally responsible. Republicans have been talking a lot about waste, fraud, and abuse lately – this legislation is a great place to start rather than taking away health insurance from working Americans and increasing premiums for millions of families.”
Specifically, the bill would create new civil penalties for agents and brokers submitting incorrect information and knowingly submitting false or fraudulent information, as well as hold them criminally responsible for providing false or fraudulent information. It would also create a consent verification process for new enrollments and coverage changes that would notify individuals if a change to their enrollment or agent of record changes.
The bill is co-sponsored by U.S. Sens. Tammy Duckworth (D-IL), Mazie Hirono (D-HI), Amy Klobuchar (D-MN), Patty Murray (D-WA), Brian Schatz (D-HI), Jeanne Shaheen (D-NH), Tina Smith (D-MN), Chris Van Hollen (D-MD), and Peter Welch (D-VT).