Nevada Insurance Brokers Resist State’s New Public Option Plans
CARSON CITY, NV – A new public health insurance option in Nevada is facing resistance from some insurance brokers who claim they won’t be compensated for selling the plans and fear potential instability in the insurance market. The rollout, intended to expand coverage options, particularly in rural areas, is creating friction with agents who worry about the financial viability of the public option and its impact on existing carriers.
The plans, launched through an open enrollment event in early October, are intended to address limited insurance coverage, especially in rural Nevada where provider networks are historically smaller. State officials maintain the plans meet network requirements and will expand access to healthcare.
However, Melody Mojica, an agent and insurance broker, stated that many brokers are ”upset because they will not be paid for the public option plans.” She reported notable “pushback” from brokers she’s contacted who are reluctant to offer the new plans. Mojica also expressed concern that the plans’ smaller networks may limit client options.
Broker Robert Durante is actively choosing not to recommend the public option to his clients, fearing negative consequences for insurance carriers. “I am doing it because I see these plans as dangerous to the carriers, and if I contribute to the collapse of the carrier, I am not helping any of my clients,” Durante said. He pointed to the liquidation of insurance companies like Friday Health Plans in Nevada as a cautionary tale, and worries the public option could lead to further instability and potential claim payment issues. Durante clarified his decision is personal and he hasn’t directed his team to follow suit.
These concerns echo criticism from the healthcare industry, which has warned the public option could worsen Nevada’s healthcare shortage and destabilize the insurance market.
Despite past opposition, Governor Joe Lombardo’s administration has moved forward with the public option, implementing a reinsurance program designed to stabilize the market by reinvesting federal dollars.
Durante anticipates potential legal challenges for not offering the plans, stating, “We are in a situation where if we don’t do it, [offer the plan], we have the threat of lawsuit against us. If we do do it, we literally get no compensation for work offered.” He attributes the situation to a state mandate, arguing it’s detrimental to carriers, clients, and brokers alike.
