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Panel hears bill to raise insurance commissioner fines for parity and billing violations
Summary
Chairman Lumsden presented House Bill 12‑62 to increase maximum fines for insurance violations—raising unknowing-violation caps from $2,000 to $10,000 and knowing-violation caps from $5,000 to $25,000—citing inflation and enforcement needs; mental-health advocates urged the change after recent large fines revealed widespread noncompliance.
Chairman Lumsden presented House Bill 12 62 to the subcommittee, saying the bill, requested by the Department of Insurance, would modernize the commissioner's authority to levy fines for violations including mental health parity enforcement, surprise billing and prepaid legal services. "The bill increases the maximum fine for unknowing violations from 2,000 to 10,000 and for knowing violations from 5,000 to 25,000," Lumsden said.
Why it matters: Supporters said current caps have not kept pace with…
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