A federal judge has ruled in favor of brokers, lifting a moratorium on new registrations in the Affordable Care Act (ACA) exchanges. The moratorium, instituted by the Centers for Medicare and Medicaid Services (CMS) to combat fraud, was deemed likely to cause irreparable harm to agents.
The ruling, issued by a Maryland district court, allows new agents and brokers to begin training and participate in open enrollment, which started this week and ends in mid-January. The Trump administration had placed a moratorium on new ACA broker registrations in September, citing improper enrollments and fraud.
Fraud has been a concern on the exchanges, with the CMS pointing to agents and brokers as contributing to unauthorized enrollments. Nearly 19,000 agents and brokers were prevented from registering due to the moratorium. Two trade groups, the National Association of Benefits and Insurance Professionals (NABIP) and Health Agents for America (HAFA), sued over the moratorium last month.
The courts agreed with the trade groups’ arguments, stating that regulators violated the Administrative Procedure Act by not allowing public comment on the broker freeze. The court also found that the CMS failed to consider the financial harm the moratorium would inflict on broker organizations. The injunction directed HAFA and NABIP to make training for new agents and brokers available by the end of the week.
NABIP President Mychal Walker called the ruling a significant victory for licensed agents and brokers, as well as the consumers who rely on their expertise. HAFA also welcomed the court’s decision, but noted that this fight is far from over. HAFA stated that CMS must understand that regulatory authority is not unlimited and that fraud prevention must be targeted and lawful.
The CMS had argued that the moratorium was necessary to prevent fraud and improper enrollments. However, the court found that the CMS had not followed the proper procedures in implementing the moratorium. The ruling allows new agents and brokers to register and participate in the ACA exchanges, which is expected to increase access to health insurance for consumers.
