How would the people of Utah survive without the state to protect them from the evil corporation that wants to give them free services and inexpensive health insurance. It turns out the Utah insurance community doesn’t like competing with free, and the commission there is pushing back as a result. The letter from Kiser (embedded below) states that by providing free, up-front services to all, Zenefits is violating Utah inducement and rebating laws for those who choose to have it manage their insurance as well. For violating those laws, the department claims Zenefits can be assessed a penalty of $5,000 per violation and twice the profit gained from those violations. But the penalty itself is a small amount compared to the change in its business model if the local insurance department were to have its way. To comply with state laws, the department is urging Zenefits to stop advertising that it offers free HR cloud management services. More importantly, however, the regulator argues Zenefits should have to charge a “fair market value” for its services to ensure fair competition with other insurance licensees in the state. aei.org/publication/zenefits-utah-classic-case-regulatory-capture-protecting-incumbent-producers-expense-public-interest/
Posted on: Fri, 05 Dec 2014 12:41:45 +0000
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