Friday, March 21, 2014

Political Favoritism Run Amok: States Barred from Requiring Obamacare Navigators Carry Error and Omission Insurance

In a jaw-dropping turn of events illustrating governmental favoritism to the community-organizing crowd now functioning as Obamacare navigators and today's example of the bureaucratic evisceration of federalism it is now illegal for any state to require its Obamacare navigators carry errors and omissions insurance.

Yes, that is correct.  For what is sure to be a largely judgment-proof group of people, there will be no financial liability when mistakes are made in signing folks up for Exchange plans.

From Employee Benefit Advisor:
Enclosed in the 279 pages of proposed rules released Friday by the Department of Health and Human Services for the public health insurance exchanges is an answer, sort of, to a question brokers have raised for more than a year — who will be liable for navigators’ mistakes? 
In the section of the rules discussing navigators, the Obama administration’s document says “a state or an exchange must not require that all navigators be agents or brokers or carry errors and omissions coverage.” Further, the rule says that if navigators were to be required to carry E&O insurance, this would disqualify them from being considered a “community and consumer-focused nonprofit group.” Federal law requires that at least one such group be listed as a navigator. ...
From InsureBlog:
Navigators are charged with the responsibility of not only helping you find a plan that meets your needs and budget, but also have access to your personal financial data, used to determine your taxpayer funded subsidy. 
Information like your name, address, Social Security number and tax filing status. 
What could possibly go wrong?