NAIFA-Maryland, NAIFA-Greater Washington Score a Victory on Agent Commissions

CareFirst Blue Cross Blue Shield, Maryland’s largest health insurer, has reversed a decision to eliminate agent commissions on individual health insurance policies for 2018, thanks largely to advocacy by NAIFA-Maryland and NAIFA-Greater Washington, D.C.
 
Many large health insurers have significantly reduced or even eliminated agent commissions on new sales of individual market health insurance policies in recent years. NAIFA believes these decisions are short-sighted and ignore the critical role of advisors in helping clients understand the complexities of purchasing health insurance.
 
NAIFA-National has prepared several legislative and regulatory options for NAIFA state associations to pursue with the aim of having commission payments restored. Several NAIFA state associations, notably NAIFA-Florida, NAIFA-Minnesota, and NAIFA-Tennessee, have successfully lobbied to pass legislation permitting financial advisors to charge consulting fees for selling health insurance coverage to ensure that advisors are fairly compensated for the important services they provide their clients.
 
NAIFA-Maryland and industry partners submitted letters to Maryland Insurance Commissioner Alfred Redmer describing the critical role that financial advisors play in helping their clients navigate the complex health insurance landscape and how consumers will be harmed without access to professional advice from advisors. The associations further argued that CareFirst’s decision to eliminate health insurance commissions violated requirements in state law. They urged the Maryland Insurance Administration (MIA) to direct the carrier to continue paying commissions to producers, which the MIA agreed to do. 
 
  • Posted September 18, 2017 IN


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