Insurance Fraud Accountability Act

The Insurance Fraud Accountability Act (S 976) amends the Affordable Care Act to strengthen penalties for insurance agents and brokers who provide incorrect or fraudulent information during health plan enrollment. It imposes civil penalties of $10,000-$50,000 per violation for negligent errors and up to $200,000 for knowing fraud, with criminal penalties including up to 10 years in prison for willful violations. The bill requires new verification processes for agent- or broker-assisted enrollments by January 2029, including mandatory documentation, consent forms, and delayed commission payments until enrollment issues are resolved. These provisions directly affect agents, brokers, third-party marketing organizations, and consumers enrolled in qualified health plans through federal or state marketplaces.