Insurance Fraud Accountability Act

H.R. 2079 would amend the Affordable Care Act to combat fraudulent enrollments in health insurance plans, particularly by targeting unscrupulous insurance brokers and agents. The bill would establish stricter rules requiring brokers and agents to act in the best interests of consumers and would impose significant financial penalties for violations. Those who negligently provide incorrect information could face fines up to $50,000 per application, while those who knowingly submit false information could face civil penalties up to $200,000 per individual, plus potential criminal charges including imprisonment for up to 10 years.

The bill would also strengthen consumer protections by requiring individuals to receive timely notifications of any changes to their health coverage, agent of record, or premium tax credits, with clear instructions on how to cancel unauthorized activity. Consumers would gain access to their account information through websites or toll-free hotlines to monitor their enrollment details. Additionally, the bill would require brokers to report third-party marketing organizations involved in the enrollment process and would establish federal oversight mechanisms, including a process for sharing audit results and referring fraud cases to state insurance departments. These measures would take effect by January 1, 2029.