With all the scandals and scandals plaguing President Trump, many Americans are questioning how they can be confident that the president will keep his promises.
One answer: Take action, the National Association of Insurance Commissioners said in a new report released Tuesday.
In the report, the NACICO urged all insurance companies to do more to prevent fraud, fraud prevention, and fraudulent charges from affecting insurance coverage.
“Our insurance industry needs to focus on reducing fraudulent charges and fraud to ensure that consumers are protected,” said NACCO CEO Kevin Johnson.
“It’s imperative that insurers work to better manage the cost of coverage for all of their customers, so that they don’t have to subsidize expensive premiums to cover those costs.”
Insurance companies, Johnson said, need to take a holistic approach that includes identifying fraud prevention measures that are working, such as fraud detection and detection software, and offering consumers discounts on coverage.
Insurance companies also should take steps to identify fraud when it’s occurring, such like issuing a notice to consumers or having customers sign a statement stating that they have a dispute or are under investigation.
Insurance fraud is a problem, Johnson noted, and it needs to be tackled by the insurance industry, which must also “develop the capacity to identify fraudulent charges at the point of sale.”
In other words, Johnson says insurers should be proactive in detecting and preventing fraud, not reactive.
The NACC also recommended that all insurers be required to use a “risk score” to determine which products are more expensive and which are more affordable.
That’s because the score can provide consumers with information on whether their premium is too high or too low, the report said.
Insurers need to provide more information about the risks they face, Johnson added, and “do a better job of educating consumers and the public about these risks.”
Insurers must also take steps such as offering a discount on products that have been approved by the agency or by their state’s insurance commissioner, the agency said.
For example, insurers should “require companies to offer a discount for products that are not approved by their insurance commissioner,” the report added.
Insurer’s should also consider a “safety net” for customers who are hurt or injured while using their insurance.
For example, the safety net should provide “reasonable financial assistance” to families whose coverage is at risk, the authors said.
But the report recommended that insurers be careful about not just making their products more expensive, but also not offering them in states that have “strong or strong-performing” insurance markets.
Insure companies should also “work to educate consumers and promote the use of comprehensive insurance policies,” the authors added.
The Trump administration has announced a $2 trillion “recovery plan” to help American families.
But the White House is trying to do away with the Affordable Care Act, and other major provisions of the health care law that protect consumers.
For more on the healthcare law, check out the full report from the Nac, and to read more from The Hill, visit our Health Care Blog.