Representative Kathy Castor (D-FL) has reintroduced a bill with Representative Deborah Ross (D-NC) to crack down on fraudulent insurance brokers.
Named the Insurance Fraud Accountability Act, Rep. Castor's bill establishes criminal penalties for insurance brokers who perform fraudulent activities such as changing a healthcare plan without a customer's knowledge or consent, including via the establishment of a consent verification and updates to the insurance plan system and target vulnerable groups via deceptive advertising practices.
The Healthcare Planning Council of Northeast Florida (HPCNEF) noted that insurance fraud by brokers is motivated by the fact that many brokers receive commissions for selling insurance plans with little to no oversight, thereby incentivizing fraud.
"The Affordable Care Act (ACA) has been a godsend to families across America and in Florida, which has the highest number of marketplace enrollees nationwide. The ACA has lowered the cost of high quality health care and banned discrimination for preexisting conditions. Unfortunately, a few bad actors are exploiting people and signing them up for health insurance plans without their consent," said Rep. Castor in her press release.
Additionally, she stated that the bill seeks "to bring greater transparency and accountability to the health insurance marketplace by cracking down on predatory health insurance sales, ensuring consumers are notified of plan changes, establishing stronger penalties for fraudulent enrollments, and requiring brokers to act in the best interest of the customer. Together, these measures will protect hardworking Americans from predatory practices and keep money in their wallets where it rightfully belongs."
Rep. Ross, the bill's cosponsor, added, "North Carolina families should never have to wake up to find their health insurance changed or canceled without their knowledge."
"I am proud to reintroduce necessary legislation that protects our communities from deceptive practices, holds bad actors responsible, and ensures every North Carolinian can trust that their health care decisions remain in their hands. While Republicans attempt to slash Americans' health care, we are introducing a bill that would address tangible problems in our country's health care system," Rep. Ross concluded.
In December, Castor applauded a Federal Trade Commission (FTC) rule mandating the sale of live-event tickets and short-term lodging stays to include the full price of what is being sold up front and in a way that is clearly visible to buyers, intended to eliminate "junk fees."
