New legislation aims to protect producer compensation under PPACA
Representatives Mike Rogers and John Barrow recently introduced legislation in the U.S. Congress to exempt broker compensation from the medical loss ratio calculations required by the Patient Protection and Affordable Care Act. Under the PPACA, health insurance carriers are obliged to spend 80 percent of the premiums they take in on policies sold to individuals and small group toward medical claims and health quality initiatives. For policies sold to larger groups the ratio target is 85 percent. House Resolution 1206 is called the “Access to Professional Health Advisors Act of 2011.”
Call your Congressman today and urge them to support HR 1206 – phone numbers of all Florida Congressional District Offices are listed below. HR 1206 has already attracted bipartisan support from Democrats and Republicans and a Senate companion bill is expected to be filed soon. However, some Democrats, several consumer groups and the American Medical Association oppose removing commissions from the medical loss ratios. And some Republicans do not want to acknowledge or make better a bill that they hope to repeal, weaken or have the Supreme Court find unconstitutional.
“’Insurance agents and brokers serve as the voice of health insurance for millions of families and small businesses in rural communities,” said Congressman Barrow quoted in the Alan Katz Health Care Reform Blog . “These folks can help explain to consumers the many changes taking place in the healthcare world over the next few years, and so it’s important that our insurance agents are not hampered by provisions in the new healthcare law. This is another critical improvement that needs to be made to the healthcare law, and I’m hopeful that my colleagues on both sides of the aisle will work with Mike and me to see that this important improvement is implemented.”
The National Association of Insurance Commissioners has supported removing agent commissions from the MLR’s, with the effort being led by Florida Insurance Commissioner Kevin McCarty. Bottom line: There is no way to predict how the whole health care reform mess will end up, but we need to support this effort to protect agent and broker interests and to make sure our clients continue to get the professional guidance that is required to navigate the health insurance maze.
A recent NAIFA-Florida survey found that agent’ commissions on individual and group plans were being slashed due to PPACA. This, despite the difficulties encountered in helping clients that is described in the bill’s language:
Licensed insurance producers provide guidance regarding benefit and contribution arrangements to ensure compliance with applicableState and Federal laws and regulations; assist with establishing section 125 plan tax savings under the Internal Revenue Code, health reimbursement arrangements, flexible spending arrangements, and other programs to maximize tax advantages and ensure compliance with applicable Internal Revenue Service guidelines; create educational materials and provide on-site assistance to aid in employee benefit communication; assist in managing eligibility for new hires and terminated employees; provide advocacy for employees through the health insurance claim process; and advocate for employers with insurers in developing proposals, renewals, and for service issues throughout the year.
Again, please call your congressman and ask him or her to support HR 1206 – all numbers to their offices are below.
Congressional District Phone Numbers
Rep. Sandy Adams 407.977.7601
Rep. Corrine Brown 904.354.1652
Rep. Gus Bilirakis 727.773.2871
Rep. Vern Buchanan 941.951.6643
Rep. Kathy Castor 813.871.2817
Rep. Ted Deutch 561.988.6302
Rep. Ander Crenshaw 904.598.0481
Rep. Mario Diaz-Balart 305.470.8555
Rep. Alcee Hastings 954.733.2800
Rep. Connie Mack 239.573.5837
Rep. John Mica 407.657.8080
Rep. Jeff Miller 850.479.1183
Rep. Rich Nugent 352.799.8354
Rep. Bill Posey 321.632.1776
Rep. David Rivera 305.222.0160
Rep. Tom Rooney 772.288.4668
Rep. Ileana Ros-Lehtinen 305.668.2285
Rep. Dennis Ross 863.644.8215
Rep. Steve Southerland 850.785.0812
Rep. Cliff Stearns 904.269.3203
Rep. Debbie Wasserman Schultz 954.437.3936
Rep. Daniel Webster 407.654.5705
Rep. Allen West 954.202.6211
Rep. Federica Wilson 305.690.5905
C.W. “Bill” Young 727.394.6950