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PIA-endorsed MLR Bill Introduced in Senate

A bill that PIA strongly supports, the Access to Independent Health Insurance Advisors Act (S.1661), was introduced in on June 24 in the U.S. Senate...
June 25, 2015

A bill that PIA strongly supports, the Access to Independent Health Insurance Advisors Act (S.1661), was introduced in on June 24 in the U.S. Senate. Sponsors Sens. Chris Coons (D-Del.) and Johnny Isakson (R-Ga.) said the legislation that will ensure health insurance agents and brokers can continue to provide essential counseling and advocacy services to consumers looking for the right health insurance coverage.

"Our priority should always be to protect consumers and small businesses, ensuring they have access to the best possible healthcare coverage," said Sen. Coons. "Our bipartisan bill will fix a provision in the healthcare law that is currently making it harder for independent agents and brokers to stay in business and serve consumers."

S.1661 addresses a provision of the Affordable Care Act (ACA) known as the medical loss ratio (MLR) that has had unintended consequences for licensed independent agents and brokers and their employees. Due to the Department of Health and Human Services' (HHS) interpretation of the medical loss ratio provisions in the health reform law, health insurance carriers are required to treat agent and broker commissions as part of their administrative costs. This, in turn, threatens the ability of independent agents and brokers to stay in business and serve the public.

PIA supports S. 1661 and companion legislation already introduced in the House, H.R. 815.

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