The Insurance Fraud Accountability Act strengthens penalties and oversight for insurance agents and brokers who commit fraud or provide false information when enrolling people in health insurance plans through the Affordable Care Act's marketplace exchanges. The bill imposes civil penalties ranging from $10,000 to $200,000 per individual affected by violations, depending on whether the agent's actions were negligent or knowingly fraudulent, and creates criminal penalties of up to 10 years in prison for knowing and willful fraud. It also requires exchanges to establish verification processes for agent-assisted enrollments—including obtaining consumer consent documentation and delaying commission payments until enrollment information is verified—while ensuring individuals can access their account information and cancel unauthorized changes. Additionally, the bill gives the federal government authority to regulate field marketing organizations and third-party marketing organizations involved in health plan enrollment and requires regular audits of agents and brokers based on consumer complaints and suspicious enrollment patterns, with results shared with state insurance departments. These requirements must be implemented by January 1, 2029, and the bill aims to protect consumers from fraudulent enrollments while holding agents and brokers accountable for misconduct.
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