Health insurance navigators in Louisiana may need to receive special permits from the state government in order to work with consumers. New legislation, called House Bill 764, has been introduced that would require navigators to live up to a higher regulatory standard. The organizations managing these navigators would also have to receive special permits as long as they continue to accept money from the federal government. The legislation has managed to attract some support from the state’s lawmakers.
Lawmakers believe that new legislation will help protect consumers more effectively
The legislation calls for the licensing and registration of all insurance navigators in the state. These navigators would have to work more closely with the state’s Insurance Commissioner in order to continue working with consumers. State lawmakers suggest that the legislation is meant to provide consumers with more protection. Ensuring that navigators are licensed allows consumers to more easily find information concerning these navigators. With this information being so easily accessible, consumers could avoid potential fraud.
Navigators are part of the Affordable Care Act and act a liaisons between consumers and health insurance exchanges. These navigators are meant to help make the enrollment process of exchanges simpler for consumers by offering guidance concerning insurance products and helping people access subsidies being offered by the federal government. Navigators cannot be affiliated with any for-profit insurance organization and must only work through non-profit groups.
More regulation could help mitigate the prevelance of insurance fraud
While navigators have been well received among many consumers, state lawmakers often express concern that these navigators are not held to a high regulatory standard. Navigators are only loosely regulated by federal law. Some states want to ensure that navigators are properly regulated so that consumers are not taken advantage of. A great deal of confusion still surrounds the Affordable Care Act and this confusion has, unfortunately, lead to a higher frequency in fraudulent activities. Insurance fraud is a costly problem for consumers and insurance companies alike.
