Six insurance brokers file a lawsuit against the state’s exchange
Nevada’s health insurance exchange has become the subject of yet another lawsuit. Six insurance brokers working in the state have filed a lawsuit against the exchange in the Clark County District Court. The lawsuit claims that the Silver State Health Insurance Exchange and Xerox, which developed the exchange’s website, have failed to pay commissions to brokers. This has been a longstanding issue that has received relatively little attention over the past few months.
Brokers are collectively owed more than $200,000 in commission that has been withheld by the exchange
The six insurance brokers may be collectively owed more than $200,000 in commission on policies sold through the state’s exchange. The brokers and their legal representation are seeking class-action status for their lawsuit, which currently boasts of more than 200 plaintiffs. The lawsuit also includes many consumers that have paid for coverage through the exchange but have never received policies. These consumers have been unable to receive medical care because they did not have the insurance coverage that they paid for.
Brokers continue to adapt to the problematic aspects of health insurance exchanges
Insurance brokers have been voicing their concerns for some time regarding certain provisions of the Affordable Care Act and how it may affect their business. Health insurance exchanges were meant to work alongside brokers, allowing them to direct consumers to policies that are sold through these exchanges and continue to receive commission for their work. In some states, consumers have begun avoiding brokers altogether, while in other states brokers are finding it difficult to work with exchanges.
Commissions are being affected by the faulty operations of exchanges in many parts of the country
Commissions are typically paid to insurance brokers by their representative insurance company when a consumer pays for their coverage. The lawsuit claims that the exchange failed in providing the appropriate information to insurance companies, meaning that insurers could not confirm if any commission was due to brokers. The lawsuit also claims that Xeorx retained premiums paid by consumers and collected interest on these premiums for several months.