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Bill to Exempt Agent Commissions from MLR Introduced Again in Senate

Sen. Mary Landrieu (D-La.) has introduced a bill to exempt certain agent and broker compensation from the calculation of medical loss ratios (MLRs) with regard to health insurance policies sold under the Affordable Care Act (ACA)...
March 27, 2013

Sen. Mary Landrieu (D-La.) has introduced a bill to exempt certain agent and broker compensation from the calculation of medical loss ratios (MLRs) with regard to health insurance policies sold under the Affordable Care Act (ACA).

The bill exempts certain compensation to independent insurance producers from administrative cost calculations of the MLR of health insurance plans. “This bill removes artificial disincentives that could prevent licensed independent insurance producers from continuing to provide a wide range of services for both individual consumers and the business community in dealing with the Affordable Care Act,” said Mike Becker, vice president of federal affairs for PIA, in comments to the National Underwriter. “We are optimistic for passage of Sen. Landrieu’s bill, as it is crafted in a way to avoid negative impact on the federal deficit.”

What It Means to Agents: PIA thanks Sen. Mary Landrieu for reintroducing legislation to protect consumer access to licensed insurance professionals when they purchase health insurance under the ACA. A companion bill is expected to be introduced in the House soon.

Senate Introduces MLR Bill (National Underwriter 3/22/13)

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