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HEALTHCARE REFORM UPDATE:  Agent Compensation and the MLR

Almost every day, a name or two is added to the bipartisan list of co-sponsors for H.R. 1206, the bipartisan measure to remove independent agent and broker compensation from the medical loss ratio (MLR) requirements created by the Patient Protection and Affordable Care Act. In addition, we continue to work with Energy and Commerce Committee leadership on scheduling a hearing in the near future to address MLR and its impact on the nation's economy, as well as with senators on both sides of the aisle on a bipartisan Senate companion measure. You can help the effort by educating your lawmakers about the bill and urging them to co-sponsor H.R. 1206.

Meanwhile, the National Association of Insurance Commissioners continues its efforts to examine the impact the MLR requirements have had on producer compensation nationally. The NAIC is examining if commission reductions are a national trend and if they were occurring for years prior to the MLR requirements, or if the MLR requirements have resulted in a significant change. NAHU has worked with members across the country to provide commission data that spans at least three years for all major carriers in all markets in every state. The NAIC's Health Care Reform Actuarial Working Group will consider this data, in conjunction with information submitted by carriers nationwide and Connecture, and present a finding to the NAIC's Professional Health Insurance Advisor Task Force by May 19. Following the release of that report, the NAIC will resume its consideration of an endorsement of H.R. 1206.

Click here to read H.R. 1206

Click here to contact your lawmaker about supporting H.R. 1206


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