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PIA Endorses Bill to Remove Agent Compensation From MLR

PIA has endorsed the Access to Professional Health Insurance Advisors Act of 2015 (H.R. 815) which was introduced on February 9 by Rep. Billy Long (R-Mo.) and Rep. Kurt Schrader (D-Ore.)...
February 11, 2015

PIA has endorsed the Access to Professional Health Insurance Advisors Act of 2015 (H.R. 815) which was introduced on February 9 by Rep. Billy Long (R-Mo.) and Rep. Kurt Schrader (D-Ore.). The legislation clarifies that producer compensation will not be considered as part of medical loss ratio (MLR) calculations under the Affordable Care Act (ACA).

In 2011, the Department of Health and Human Services (HHS) issued regulations requiring health plans to treat independent agent and broker compensation as part of the calculation of total administrative expenses limited to 15% or 20% under the ACA. As a result, health insurance agent and broker compensation has been slashed by health insurers in the small group and individual markets, leading to an exodus of qualified, licensed agents and brokers capable of serving people in ACA-backed plans.

"This is a major oversight that has caused major, negative consequences," said PIA National Executive Vice President & CEO Mike Becker. "Congress needs to fix this. PIA expresses its appreciation to Reps. Long and Schrader for introducing legislation that addresses this problem."