HealthSherpa and Insurers Team Up To Curb Unauthorized ACA Enrollment Schemes

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HealthSherpa, a private company that brokers use for Affordable Care Act health plans, is teaming up with insurers to prevent unauthorized sign-ups and plan switches. The initiative, called “Member Defense Network,” aims to stop unscrupulous agents from enrolling people in plans they don’t need or switching their coverage without permission. Federal regulators have received complaints from 90,000 customers about unauthorized enrollments. HealthSherpa will use automation to verify consent from consumers, potentially withholding commissions from agents who submit fake consents. While the program may help prevent fraud, some believe it could disrupt the market and harm legitimate agents.

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