Independent BROKERS TIME Act of 2025

Bill Number

S. 2625

Origin Chamber

Senate

Congress

119th Congress, Session 1

Status

Introduced

Latest Action

2025-07-31: Read twice and referred to the Committee on Finance.

Last Updated

2025-08-09T03:53:26Z

AI-Generated Summary

Purpose

The legislation aims to improve oversight and regulation of independent insurance agents, brokers, and third-party marketing organizations (TPMOs—entities that market Medicare plans on behalf of insurers but are not directly employed by them) under Medicare Parts C (Medicare Advantage plans) and D (prescription drug plans). It seeks to protect Medicare beneficiaries from predatory marketing practices, such as scams by call centers, while reducing unnecessary regulatory burdens on legitimate independent agents and brokers.

Key Provisions

• Rulemaking on TPMO Definition (Section 2(a)):
• Requires the Secretary of Health and Human Services (HHS) to update regulations defining TPMOs, distinguishing them from independent agents and brokers.
• Considers factors like call centers outside the U.S., publicly traded or private equity-backed companies, and lead-generation firms (businesses that collect potential customer information for sale).
• Ensures TPMOs meet the same compliance standards as licensed insurance agents, especially for lead generation.
• Accounts for independent agents as individuals or small agencies that directly enroll and service clients for multiple insurers.

• Oversight of Predatory Call Centers (Section 2(b)):
• Mandates rulemaking to amend regulations, offering monetary rewards to individuals reporting call centers involved in Medicare-related marketing scams.

• Standardized Registration Process (Section 2(c)):
• Requires Medicare Advantage organizations and Part D plan sponsors to create a uniform registration system for independent agents and brokers.
• Includes mechanisms to clearly separate them from TPMOs.
• Aims to ease requirements for existing customers compared to new enrollments, reducing paperwork burdens.

• Rulemaking Procedures and Timeline (Section 2(d)):
• Rulemakings must include a 90-day public comment period via Federal Register notice.
• Final rules due within one year of enactment.
• Limits Office of Information and Regulatory Affairs review to 60 days.

• Nullification of 48-Hour Waiting Period (Section 3):
• Amends the Social Security Act to eliminate the enforced 48-hour (or longer) wait between a beneficiary's "Scope of Appointment" agreement (a form authorizing marketing discussions) and meetings with independent agents or brokers.

• Inspector General Review (Section 4):
• Directs the HHS Inspector General to review fraudulent or misleading practices by predatory call centers in Medicare marketing.
• Requires a report to Congress within one year, including recommendations for new laws or administrative actions.

Significant Changes to Existing Law

• Updated Definitions and Distinctions: Expands and clarifies the regulatory definition of TPMOs in federal code (42 CFR sections 422.2274 and 423.2274), introducing new factors for classification that were not previously specified.
• Elimination of Waiting Period: Directly amends Section 1851(j)(2)(A) of the Social Security Act (42 U.S.C. 1395w-21) to prevent enforcement of the 48-hour delay in regulations (42 CFR sections 422.2264 and 423.2264), allowing immediate meetings after Scope of Appointment agreements for independent agents.
• New Incentives and Processes: Introduces monetary rewards for reporting scams (amending 42 CFR section 420.405) and mandates a standardized registration system, which did not exist before.
• Accelerated Timelines: Imposes strict one-year deadlines for rulemakings and limits review periods, speeding up changes compared to standard processes.

Potential Impacts

• On Government Agencies: HHS must undertake multiple rulemakings and implement new oversight, increasing administrative workload but providing tools like rewards to combat fraud. The HHS Inspector General gains a specific mandate for review, potentially leading to more investigations.
• On Citizens (Medicare Beneficiaries): Enhances protections against misleading sales tactics, especially from offshore or lead-focused call centers, reducing scam risks during enrollment. Independent agents can meet beneficiaries sooner, potentially improving access to personalized advice without delays.
• On International Relations: Minimal direct impact, though regulations targeting non-U.S.-based call centers could indirectly affect foreign entities involved in Medicare marketing, possibly straining relations if enforcement escalates.
• Broader Effects: May streamline enrollment for legitimate agents, lowering costs for insurers and benefiting the Medicare program by curbing fraudulent enrollments that lead to improper payments.

Main Stakeholders Affected

• Medicare Beneficiaries: Primary beneficiaries of anti-scam protections but also users of agent services.
• Independent Agents and Brokers: Gain relief from burdensome rules, faster interactions, and standardized registration to operate more efficiently.
• Third-Party Marketing Organizations (TPMOs) and Call Centers: Face stricter definitions, compliance standards, and potential penalties or rewards-based reporting, targeting predatory ones while allowing ethical operations.
• Insurers and Plan Sponsors: Medicare Advantage organizations and Part D sponsors must adopt new registration processes, affecting their marketing partnerships.
• HHS and Inspector General: Responsible for implementation, rulemaking, and reporting.
• Congress: Receives the Inspector General's report for potential further action.

Notable Legal, Constitutional, or Political Implications

• Legal Implications: Strengthens administrative rulemaking under the Medicare Act by mandating specific updates and timelines, potentially setting precedents for faster regulatory changes in health programs. The reward system could encourage whistleblowing but raises questions about fair enforcement to avoid false reports.
• Constitutional Implications: None overtly raised; aligns with Congress's authority over federal programs like Medicare. However, nullifying waiting periods might be challenged if seen as reducing consumer safeguards, though the bill frames it as targeted relief for independents.
• Political Implications: Bipartisan introduction (by Sens. Rounds and Cortez Masto) suggests broad support for balancing consumer protection with business relief in Medicare marketing. Could influence future debates on fraud prevention versus regulatory overreach, especially amid concerns over Medicare costs and elder financial exploitation.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Sen. Rounds, Mike [R-SD]

Cosponsors (1)

Sen. Cortez Masto, Catherine [D-NV]

Recent Actions

• 2025-07-31: Read twice and referred to the Committee on Finance.
• 2025-07-31: Introduced in Senate

Bill Versions

• Independent Broker Relief and Oversight of Knowingly Egregious and Repetitive Sales Tactics In Medicare Enrollment Act of 2025 — issued 2025-07-31 — PDF (7 pages)