TAMPA, FL – Today, Reps. Kathy Castor (FL-14) and Deborah Ross (NC-02) introduced the bicameral Insurance Fraud Accountability Act, legislation aimed at establishing criminal penalties and enhancing consumer protections against rogue health insurance brokers who are changing Americans’ Affordable Care Act (ACA) marketplace plans and disenrolling them from Medicaid without their knowledge or consent. This bill addresses alarming tactics that jeopardize the financial and health security of American families.

In June, Senators Ron Wyden (D-OR), Sherrod Brown (D-OH), Tammy Duckworth (D-IL), Patty Murray (D-WA), Brian Schatz (D-HI), and Chris Van Hollen (D-MD) introduced the Insurance Fraud Accountability Act in the Senate.

"The Affordable Care Act (ACA) has been a godsend to families in Florida and across America. 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. "On the first day of Open Enrollment, I’m proud to introduce the Insurance Fraud Accountability Act with Rep. Ross 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.”

“North Carolina families deserve to feel secure in their health care choices, but for far too long, rogue brokers have exploited their trust,” said Rep. Ross. “This bill is a necessary reform to protect our communities from deceptive practices that leave families with unexpected medical bills and significant financial strain. By holding these bad actors responsible, we are taking concrete steps to protect consumers and their access to reliable health care.”

This legislation will impose criminal penalties for agents and brokers who engage in fraudulent practices, including enrolling individuals in plans without their consent and using deceptive marketing to target vulnerable groups. To further protect consumers, the legislation will create a consent verification process, ensuring that individuals will be kept informed of any new enrollments or changes to their insurance coverage. This comprehensive approach aims to strengthen accountability and transparency in the health insurance industry. 

The bill is endorsed by AHIP, American Cancer Society Cancer Action Network, American Kidney Fund, American Lung Association, Arthritis Foundation, Blue Cross Blue Shield Association, Cambia Health Solutions (Regence BCBS), CancerCare, Centene Corporation (Ambetter), Child Neurology Foundation, Chronic Disease Coalition, Crohn's & Colitis Foundation, eHealth, Epilepsy Foundation, Families USA, Hemophilia Fed of America, Immune Deficiency Foundation, Lupus Foundation of America, Muscular Dystrophy Association, National Alliance on Mental Illness (NAMI), National Health Council, National Multiple Sclerosis Society, National Patient Advocate Foundation, QuoteVelocity, Susan G. Komen, The AIDS Institute, The Leukemia & Lymphoma Society, The Mended Hearts, Inc., UnidosUS, and WomenHeart: The National Coalition for Women with Heart Disease.

Bill text is available here, and a one-pager is available here.