New Penalties for Insurance Fraud and Consumer Protection
This act introduces stricter penalties for insurance agents and brokers who provide false information when enrolling individuals in health plans. Its aim is to protect citizens from dishonest practices, ensure data security, and guarantee correct health insurance enrollments. It also establishes new verification and oversight rules for the enrollment process.
Key points
Agents and brokers providing incorrect information may face penalties from $10,000 to $50,000 for each individual affected by the fraud.
Knowingly providing false information can result in a penalty of up to $200,000 per individual, and intentional actions may lead to up to 10 years in prison.
A verification process for health plan enrollments will be established to ensure agents have customer consent for insurance changes.
Citizens will receive notifications about any changes to their insurance and will have easy access to their data online or via a hotline.
Audits of agents and brokers are introduced, along with a requirement to report fraud cases to relevant state authorities.
Expired
Citizen Poll