A new CBO report said HR 1206 (a bill that would remove health insurance agent compensation out of medical loss ratio calculations) could cause premiums to rise an additional 0.1 percent to 0.2 percent, but such an increase “would be a small price to pay for giving consumers access to help from licensed agents,” NAIFA’s Diane Boyle said in a story in LifeHealthPro.
“The point of the MLR ratio was to ensure consumers received value for their premium dollars, not to offer a rebate," Boyle said. "Without a fix, the current law puts American consumers, businesses and families at risk. They will be left without advocates to assist with coverage or claims problems and without professionals to assist in the economical selection of benefits tailored to fit their needs.”
The story also cites a NAIFA survey of members, which found that agents’ commissions have been significantly impacted since the MLR went into effect.
See NAIFA white paper, "No Premium on Value," on agents' experience with the MLR.