Brown signs first US bill to protect health brokers
- On Monday, California Gov. Jerry Brown (D) signed AB 1163, making California the first state in the nation to protect health insurance brokers from eleventh hour changes in such contracts, Sacramento Business Journal reports.
- The measure requires insurance companies to give a 45-day notice before making large changes to agent contracts. The law does not apply to mutually-agreed-upon or necessary changes due to modifications in state or federal regulation.
- Michael Lujan, president of the California Association of Health Underwriters, told Sacramento Business Journal the law is important because “hundreds of insurance agents work with Californians to get or renew health insurance late in the year.”
One example of a last minute change occurred last year when a company announced on Dec. 23, 2014, to cut broker commissions to 1% (such commissions are usually 5%), effective three days later, the Journal reports.
Such an action left agents with little time to evaluate choices.
Open Medicare enrollment begins Oct. 15. Open enrollment for Covered California begins Nov. 1.
- Sacramento Business Journal First law of its kind in U.S. protects California health-insurance brokers
Follow Jeff Byers on Twitter