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PIA Endorses Access to Professional Health Insurance Advisors Act of 2015 (H.R. 815)

WASHINGTON — The National Association of Professional Insurance Agents has endorsed the Access to Professional Health Insurance Advisors Act of 2015, which was introduced by Rep. Billy Long (R-Mo.) and Rep. Kurt Schrader (D-Ore.)...
February 10, 2015

WASHINGTON — The National Association of Professional Insurance Agents (PIA) has endorsed the Access to Professional Health Insurance Advisors Act of 2015 (H.R. 815), which was introduced 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 significant, 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.”

“PIA members are insurance professionals that provide personal support, advice, and counsel to their customers,” said PIA National Director of Federal Affairs Jon Gentile. “It is critical that they continue to do so as the ACA makes significant changes to the healthcare market. It is imperative that consumers and employers understand the impact of these changes and have full access to licensed, trained, local insurance agents who can provide them with professional advice regarding all of the options available to them.”

PIA members from around the country will urge lawmakers to pass H.R. 815 during their annual Federal Legislative Summit (FLS) on March 25-26 in Washington, D.C.

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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