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PIA Applauds Introduction of MLR Legislation in the Senate

WASHINGTON — The National Association of Professional Insurance Agents has applauded Sens. Chris Coons (D-Del.) and Johnny Isakson (R-Ga.) for introducing the Access to Professional Health Insurance Advisors Act of 2015 (S. 1661)...
June 30, 2015

WASHINGTON — The National Association of Professional Insurance Agents (PIA) has applauded Sens. Chris Coons (D-Del.) and Johnny Isakson (R-Ga.) for introducing the Access to Professional Health Insurance Advisors Act of 2015 (S. 1661). The legislation clarifies that producer compensation will not be considered as part of a medical loss ratio (MLR) under the Affordable Care Act (ACA) for the individual and small group markets.

“PIA thanks Senators Isakson and Coons for introducing this bill in the Senate,” said PIA National Executive Vice President & CEO Mike Becker. “The current interpretation of the MLR formula is hurting independent agents and the individuals and small businesses they serve. Congress needs to fix this.”

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, leading to an exodus of qualified, licensed agents and brokers capable of serving people in ACA-backed plans. This bill would allow for agents to be fairly compensated.

PIA also supports companion legislation already introduced in the House (H.R. 815).

Founded in 1931, PIA is a national trade association that represents member insurance agents and their employees who sell and service all kinds of insurance, but specialize in coverage of automobiles, homes and businesses. PIA members are Local Agents Serving Main Street AmericaSM. PIA’s web address is www.pianet.com.

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