HAFA praises bill to establish multifactor authentication for ACA enrollees

Health Agents for America is applauding the introduction of a bill that would tighten identity protections for consumers who enroll in health insurance in the Affordable Care Act marketplace.

Rep. Glenn Grothman, R-Wisc., introduced the Marketplace Fraud Accountability Act, which would require the Centers for Medicare & Medicaid Services to implement multifactor authentication for enrollees in the ACA marketplace to better protect Americans' personal information and reduce fraud.

"Fraudsters are constantly looking for ways to exploit weak security systems, and the federal government shouldn't make it easy for them," Grothman said in a news release.

"Multifactor authentication has become a standard security measure for everything from banking to email to fast food apps because it works. There's no reason Americans should have stronger protections for their bank accounts than for their healthcare accounts. This is a commonsense anti-fraud measure that will make it harder for bad actors to manipulate federal healthcare account and exploit taxpayer-funded programs. By strengthening these basic security protections, we can better protect enrollees and save taxpayer funds by reducing fraud and improper payments. At the same time, this bill ensures individuals without reliable broadband or cellular service can continue accessing their healthcare accounts through alternative verification methods."

B. Ronnell Nolan, HAFA president and CEO, said, "Congressman Grothman has stepped forward as a true champion for both consumers and the professional agent community.

"The Marketplace Fraud Accountability Act is about protecting Americans from fraud, preserving consumer choice, and ensuring licensed agents can continue serving their clients with integrity and accountability. This legislation is long overdue."

The Marketplace Fraud Accountability Act would require CMS to implement multifactor authentication for ACA enrollees within one year of enactment. The legislation also directs the Secretary of Health and Human Services to provide alternative authentication methods on a case-by-case basis for individuals who lack reliable broadband or cellular service, ensuring they are not prevented from accessing their health care accounts.

Multifactor authentication is a widely used security measure that verifies a user's identity through two or more authentication factors, such as a password, security token or biometric identifier. Although Americans routinely use these protections for banking, email and other online services, CMS does not currently require multifactor authentication for ACA enrollees.

Watchdog organizations have raised concerns that the lack of basic identity protections leaves enrollees vulnerable to fraud, unauthorized account changes, and identity theft. According to the Paragon Institute, fraud and improper enrollment resulting from these vulnerabilities is conservatively estimated to cost taxpayers between $15 billion and $26 billion. Several state-based health care exchanges, including DC Health Link, already require multifactor authentication.