TDI Testifies Before U.S. House Oversight and Government Reform Committee on Proposed Navigator Rules

AUSTIN, Texas, Dec. 16 -- The Texas Department of Insurance issued the following news release:

The Texas Department of Insurance (TDI) testified today at a hearing in Richardson at the invitation of the U.S. House Oversight and Government Reform Committee regarding proposed rules to better protect the private information of consumers who seek assistance from federal health benefit exchange navigators.

"The proposed TDI rules are necessary to provide a state solution to help and protect Texas consumers by ensuring the security of their private information," TDI Deputy Chief of Staff Kevin Brady said at the hearing. "We appreciate the opportunity to testify on the efforts the state of Texas and the Texas Department of Insurance are taking to protect consumers."

Under the proposed rules, entities and individuals providing enrollment assistance in the federal health exchange would be required to register with TDI.

Requirements for navigator registrations would include:

* Proof of U.S. citizenship or immigration status to obtain employment in U.S.

* Documentation of compliance with education requirements

* Fingerprinting and background check

* Evidence of financial responsibility to protect individuals against wrongful acts

Navigators would be prohibited from the following:

* Charging consumers for providing information about health coverage

* Selling, soliciting, or negotiating health insurance coverage

* Recommending a specific health benefit plan

* Providing advice regarding substantive benefits or comparative benefits of different health plans

* Engaging in electioneering activities or financing or otherwise supporting the candidacy of an individual for government positions

Under the proposed rules, Texas Insurance Code provisions related to privacy and protection of personal information would also apply to navigators.

Senate Bill (SB) 1795 passed by the 83rd Texas Legislature and signed by Governor Rick Perry requires the Commissioner of Insurance to set standards ensuring that navigators can perform their required duties if federal standards are determined to be insufficient.TDI posted an outline of concerns with federal regulation of navigators on November 15, 2013,

following an informal stakeholder meeting conducted on September 30, 2013. The resulting formal rule proposal was posted on our website on December 3, and published in the Texas Register on December 6.

TDI will hold two public hearings to allow for comment on the proposed rules. The first public hearing will be at 9:00 a.m. on December 20, 2013. A second public hearing will take place at 9:00 a.m. on January 6, 2014. Both opportunities for public comment will be audio streamed online and archived on the agency website.

The public hearings will take place at the Hobby Building, 333 Guadalupe St., Austin, TX 78701.

Comments can be submitted to TDI via e-mail and by hard copy until 5:00 p.m. on January 6, 2014.

Comments by E-mail should be sent to [email protected] and to [email protected] .

Written comments should be sent to:

* Sara Waitt, General Counsel, Mail Code 113-2A, Texas Department of Insurance, PO Box 149104, Austin, Texas 78714-9104, and

* Jamie Walker, Associate Commissioner, Licensing Services Section, Mail Code 305-2A, Texas Department of Insurance, PO Box 149104, Austin, Texas 78714-9104

The proposed rules were published in the Texas Register on December 6, 2013, and are posted on the agency website at: http://www.tdi.texas.gov/rules/2013/documents/navproposal.pdf .

For a copy of TDI's prepared testimony, please visit:

For more information contact: [email protected]

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