The House Energy and Commerce Committee today approved H.R. 1206, a bill introduced by Reps. Mike Rogers (R-Mich.) and John Barrow (D-Ga.) that would remove insurance broker fees from the medical loss ratio (MLR) calculation in the Patient Protection and Affordable Care Act.
Convincing evidence shows that including broker compensation in the MLR has seriously harmed brokers who provide health insurance, as well as the individuals and small businesses they serve.
NAIFA has been a strong advocate for fixing the MLR provision in the health care law.
“Including insurance brokers’ compensation in the MLR is a bad idea, so we welcome progress toward getting their commissions removed from the calculation,” said NAIFA President Rob Smith. “Since the MLR went into effect, our members who provide health coverage have seen their compensation decrease dramatically. This doesn’t just hurt the brokers, but also their employees and, most importantly, the consumers who rely on them to obtain coverage and assistance in understanding the complex health care law.”“Brokers provide myriad services, from analyzing clients’ coverage needs to helping individuals get claims approved to providing wellness programs for small businesses,” Smith added. “They are the de facto human resources departments for many small companies. These are services that no one else provides and that brokers cannot continue to provide if they are not fairly compensated.”