The National Conference of Insurance Legislators (NCOIL) has formally resolved to support federal legislation that would remove broker and agent compensation from the Affordable Care Act’s medical loss ratio (MLR) calculation. The resolution endorses H.R. 1206, a bipartisan bill proposed by Reps. Mike Rogers (R-Mich.) and John Barrow (D-Ga.) that has more than 100 cosponsors in the House of Representatives.
The NCOIL executive committee approved the resolution July 17 at its summer meeting. The group “strongly urges Congress to enact [the Roger-Barrow legislation]” and calls on state governors, insurance commissioners and legislators to contact their congressional delegations on behalf of the bill.
"NAIFA commends NCOIL for formally joining the growing list of state and federal officials who recognize the need to fix the MLR provision of the health care reform law," said NAIFA President Terry K. Headley. "State legislators are in a good position to know just how much damage the MLR rule is doing to insurance markets, small businesses and individual consumers around the country."
The MLR rule went into effect in January and has had disastrous consequences for professional insurance advisors and their clients. To comply with the MLR, many insurance companies have slashed agent and broker commissions, in many cases by 50 percent or more. Agents have had no choice but to eliminate customer service, reduce staff, and, in some cases, leave the health insurance business.
NCOIL is an influential group that represents state legislators opposed to mounting federal initiatives to preempt state insurance regulation. In a similar move, a committee of the National Association of Insurance Commissioners (NAIC) also recently voiced its support for the Rogers-Barrow bill.