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PIA Praises Bill to Remove Agent Commissions from MLR

PIA is hailing a bill just introduced in Congress that provides that certain compensation for agents and brokers is exempt from the calculation of the allowable Medical Loss Ratio (MLR) under the Affordable Care Act (ACA)...
June 18, 2013

PIA is hailing a bill just introduced in Congress that provides that certain compensation for agents and brokers is exempt from the calculation of the allowable Medical Loss Ratio (MLR) under the Affordable Care Act (ACA). The Access to Professional Health Insurance Advisors Act (H.R. 2328) ensures proper access to licensed professional insurance agents and brokers by consumers. Currently, a rule by the department of Health and Human Services (HHS) classifies all such compensation as administrative expenses, which are restricted.

“It is critical that the indispensible role played by licensed independent insurance producers is recognized and protected,” the bill states. “It is essential that licensed independent insurance producers continue to perform these duties, and others, as the Patient Protection and Affordable Care Act has made significant changes to the regulatory environment for health plans.”

H.R. 2328 made key technical adjustments to a previous bill that should improve its score by the Congressional Budget Office, improving its chance for passage. The changes will also make the House bill more consistent with companion legislation in the Senate (S. 650). PIA thanked the prime sponsor of the House bill, Rep. Mike Rogers (R-Mich.).

PIA Agents Praise H.R. 2328 (PIA 6/13/13)