An article in Politico sums up the damage being done to health insurance advisors and their clients by the federal health care law's medical loss ratio rule. The article cites a recent NAIFA survey that found 80 percent of NAIFA members in the health business have seen their commissions decrease since the MLR went into effect.
The Department of Health and Human Services recently issued its final MLR rule and, despite the urging of groups like NAIFA and a resolution in favor of protecting agents by the National Association of Insurance Commissioners, failed to address the problems the MLR is causing agents and their clients. In fact, HHS did not even mention agents in its final rule, Politico reports.
NAIFA now looks to Congress to address the MLR problem legislatively. A bill proposed by Reps. Mike Rogers (R-Mich.) and John Barrow (D-Ga.) would exclude agent compensation from the MLR. It has 143 co-sponsors. So far, no member of the Senate has proposed a similar measure, though Politico says Sens. Ben Nelson (D-Neb.) and Mary Landrieu (D-La.) have shown interest in the issue and voiced support for protecting agents.