NAIFA applauds Sens. Isakson and Coons for introduction of bill addressing MLR

U.S. Senators Johnny Isakson, R-Ga., and Chris Coons, D-Del., have introduced legislation that would exclude any compensation earned by independent insurance agents and brokers that serve the individual and small group markets from the medical loss ratio (MLR).

NAIFA applauds the bill, Access to Independent Health Insurance Advisors Act (S.1661), because it will ensure health insurance agents and brokers can continue to provide essential counseling and advocacy services to consumers looking for health insurance coverage that meets their needs.

The MLR requirement from the Patient Protection and Affordable Care Act (ACA) mandates that, as of January 1, 2011, health plans are required to spend a minimum of 80 percent of premiums on medical claims (85 percent in the large group market) and rebate any excessive overhead to enrollees. As a result, most insurance companies have slashed agent commissions, in many cases by 50 percent. Eighty percent of NAIFA members surveyed have seen decreased commissions since the MLR went into effect. 


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