NAIC Letter Raises State Concerns on New Agent/Broker Moratorium Ahead of ACA Open Enrollment
With Affordable Care Act (ACA) open enrollment starting on Nov. 1 (and earlier in some states), state insurance regulators leading the National Association of Insurance Commissioners (NAIC) have sent a letter to the Centers for Medicare & Medicaid Services (CMS) raising concerns about a recently enacted federal moratorium on new agents and brokers and calling for an appeal process to help meet consumers’ needs.
For the 2027 plan year, the moratorium would prevent new agent and broker registrations in the Federally Facilitated Marketplace and State-Based Marketplaces that use the federal platform to enroll consumers in coverage.
Said the regulators, “As your state partners in the enforcement of the [ACA], and as state officials with responsibility to protect consumers and our markets, we fully support CMS’s goal of eliminating fraud. We have long partnered with CMS to shut down unauthorized sales and plan switching schemes, identify the entities responsible, and take appropriate administrative actions. However, we are concerned about the impact the recently announced moratorium could have on our markets.”
Specifically, they noted that existing insurers, as well as new insurers moving into a market or expanding their service area, may not have the staff needed to help consumers if they can only draw from the pool of agents and brokers who were approved to sell Marketplace policies in 2026. Also, some insurers may not be able to backfill positions opened by retirements, departures, or changes in specialties.
“As potential issues become real problems,” said the regulators, “state and federal agencies will need to work quickly to ensure consumers have the assistance they need to make appropriate coverage choices. We ask that CMS establish a method for state regulators, health insurance carriers, and insurance agencies and brokerages to appeal to CMS for an exception to the moratorium.”
Working together, state insurance regulators and CMS can fight fraudulent behavior while still working to ensure a smooth and successful open enrollment that connects consumers with the care they need.
About the National Association of Insurance Commissioners
As part of our state-based system of insurance regulation in the United States, the National Association of Insurance Commissioners (NAIC) provides expertise, data, and analysis for insurance commissioners to effectively regulate the industry and protect consumers. The U.S. standard-setting organization is governed by the chief insurance regulators from the 50 states, the District of Columbia and five U.S. territories. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer reviews, and coordinate regulatory oversight. NAIC staff supports these efforts and represents the collective views of state regulators domestically and internationally.