Insurance Fraud Accountability Act

Key Points

• Creates new fines for agents and brokers who submit wrong information for health plan sign-ups, especially when it affects each person’s application.
• Sets much bigger penalties when an agent or broker knowingly submits false information, including fines up to $200,000 per affected person and possible prison time (up to 10 years).
• Requires a federal verification step for certain health plan sign-ups handled by agents or brokers, including proof the consumer agreed (like a consent form).
• Delays agent/broker commission payments until the consumer fixes eligibility or paperwork issues, and requires timely notices so people can quickly cancel unauthorized changes.
• Adds new oversight tools, including audits based on complaints or suspicious patterns, and a shared list of agents/brokers who have been suspended or terminated.