Louisiana Commissioner: No Agency Fees on Individual Health Insurance Policies

Louisiana Insurance Commissioner Jim Donelon recently issued a directive reminding insurance agents that charging fees for individual health insurance policies is not allowed.

Now, the commissioner is reaching out to consumers to let them know that agency fees cannot be charged on individual plans whether they’re purchased on or off the Health Insurance Marketplace (www.healthcare.gov).

Open Enrollment for the Health Insurance Marketplace runs Nov. 1, 2016, through Jan. 31, 2017. During the enrollment period individuals and families who do not receive healthcare through their employers can sign up through the online Health Insurance Marketplace and purchase individual policies sold by agents and insurers

“I want to make it clear to those purchasing health insurance for themselves and their families that the law prohibits agents from charging a fee on policies,” said Commissioner Donelon. “It has come to my attention that such prohibited fees are being charged and while we are taking steps to protect policyholders from these additional charges, it’s important that consumers are aware that this is not allowed under state law.”

In October, the Louisiana Department of Insurance (LDI) issued Directive 209 which stated that producer agency fees on individual health insurance plans are in violation of La. R.S. 22:855 B(2)(a) and 22: 1568(B). The law does allow agency fees to be charged on employer-sponsored group plans, but not individual plans which may cover one person or a family.

Source: Louisiana Department of Insurance

Topics Louisiana