California Insurers Get a Rebuke from Commissioner Dave Jones

Posted: June 23, 2016

by John Hansen

CA Commissioner Attacks Carriers Who Eliminate/Lower Commissions on HDHP Plans or During SEP 

Some California insurers have made the decision not to pay commissions on health plans sold outside of Open Enrollment during the Special Enrollment Period (SEP). Other carriers have chosen to pay no commissions or lower commissions to agents who sell high deductible health plans like the Covered California Bronze Plans.

California Commissioner, Dave Jones, argued at a CAHU meeting full of California insurance brokers on May 17 that this brings up “legal issues”. He said firmly, “Contact my department if that’s happening with you.”

Jones said his concern was regarding the compliance of California Insurers. There should be no discrimination. During the Special Enrollment Period people with special health needs due to certain life events need to enroll. These consumers should not be discriminated against.

California agents cannot afford to service clients outside of Open Enrollment without getting paid. Ultimately, these kind of practices by California insurers discourage California brokers and cause them to withdraw from the market. Then, consumers with legitimate life events will have difficulty getting serviced. Commissioner Jones who is a fierce advocate for consumers says that this is a “great concern.”