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NAIC Sets Public Hearing on Agents & MLR; Draft Bill Circulating on Capitol Hill

PIA National has been advocating that the National Association of Insurance Commissioners (NAIC) needs to do now what it failed to do last year: stand...
March 8, 2011

PIA National has been advocating that the National Association of Insurance Commissioners (NAIC) needs to do now what it failed to do last year: stand up for agents and brokers who sell health insurance. We are now beginning to detect movement in that direction.

During a February 28 meeting of the NAIC Professional Health Advisors Task Force (EX), chaired by Florida Commissioner Kevin McCarty, the task force agreed to hold a public hearing March 27, 2011 from 4:00 - 5:00 p.m. during the NAIC meetings in Austin, Texas to examine health producer compensation issues. McCarty stressed that the agents must not be permitted to be "squeezed out" of the marketplace by severely restricting their compensation. During the meeting, Kansas Commissioner Sandy Praeger (KS) expressed some optimism that the department of Health and Human Services (HHS) is receptive to modifications that would allow agents to receive fair compensation.

PIA is asking the NAIC to recommend to the department of Health and Human Services (HHS) that when it issues its final regulations, producer compensation be exempt from medical loss ratio (MLR) calculations. Preliminary regulations issued by HHS did not do this, after the NAIC failed to recommend it to HHS. On March 1, PIA National went public with an article in American Agent & Broker magazine stating that NAIC and HHS can still do right by agents. We will be filing formal comments with the NAIC task force. Meanwhile, a draft bill is now circulating on Capitol Hill that would exempt health insurance agent commissions from the MLR formula.

Click here to read PIA: NAIC, HHS Can Still Do Right By Agents (American Agent & Broker 3/2011)

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