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Congressman Warns Health Agents "Desperate" Due to MLR

At a at a hearing of the House Energy and Commerce Health Subcommittee, Rep. Mike Rogers (R-Mich.) said health insurance agents and brokers will continue...
June 22, 2011

At a at a hearing of the House Energy and Commerce Health Subcommittee, Rep. Mike Rogers (R-Mich.) said health insurance agents and brokers will continue to be in a "desperate situation" unless the House changes medical loss ratio (MLR) determinations that are depressing their compensation. Rogers is the sponsor of H.R. 1206, the Access to Professional Health Insurance Advisors Act of 2011, a bill that would exclude producer compensation from MLR calculations. Rogers' bill has 90 cosponsors.

"They are losing their jobs today - today - because of this rule," Rogers said. "It is an immediate jobs crisis in our communities." Ever since preliminary regulations were issued by the Department of Health and Human Services (HHS) designed to implement the new healthcare law, producer compensation has taken a hit. HHS regulations counted producer compensation within medical loss ratio (MLR) administrative expenses that are limited to 15% or 20% under the Affordable Care Act.

PIA is pushing to have producer compensation exempted from the MLR calculations. We are urging the National Association of Insurance Commissioners (NAIC) to recommend to HHS that it exempt agent and broker commissions from the MLR calculations when it issues final regulations. Separately, PIA has endorsed H.R. 1206, the Professional Health Insurance Advisors Act of 2011.

Read more on Rep. Rogers' MLR Comments: Congressman Warns MLR Endangers Agents (BestWire 6/16/11)

Read PIA's Comments on the Need for Agents: PIA: Health Agents Not an "Unnecessary Administrative Expense" (Kaiser Health News)

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