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Federal regulators provided more specifics about why they suspended two private sector sites, including concerns about potential overseas accessing of consumer data and suspicions of involvement in enrollment and switching schemes.
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The states argue that the federal rule violates a 1996 welfare reform law and the ACA. The lawsuit also claims the rule would encourage more immigrants to come illegally, burdening states and their school systems.
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Consumers, without their consent, are being enrolled in Affordable Care Act plans or their coverage is switched. A powerful U.S. senator has introduced legislation to curb the growing problem.
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CMS says it has received more than 200,000 complaints in the first six months of the year about people being signed up for Obamacare plans or switched to new plans without their consent.
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A flood of litigation — with plaintiffs like small businesses, drugmakers, and hospitals challenging regulations — could leave the country with a patchwork of disparate health regulations.
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With tens of thousands of Americans already affected by enrollment scams that leave some without doctors or treatments, Oregon Sen. Ron Wyden wants increased enforcement against rogue agents.
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The immigrants with DACA protections, brought to the U.S. as children, are expected to enroll in the Affordable Care Act's health insurance under a new directive from the Biden administration.
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The lawsuit filed in federal court in South Florida alleges that large call centers were used to enroll people into Affordable Care Act plans or to switch their coverage, all without their permission.
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The first six digits of Social Security numbers are now masked on the ACA federal site and direct enrollment partner platforms. The change comes after a report of enrollee plans being switched without consent.
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Federal and state regulators are mulling what they can do to thwart the growing problem. Rogue health insurance brokers are switching consumers' plans without permission and collecting the commission.